With plans to offer traditional financial accounts, Walmart and Apple may drive competition in the financial services industry.
Advancing payment inclusion may allow underserved consumers to participate more fully in the economy.
Data aggregators play a critical role in financial service apps, generating benefits as well as risks.
Black consumers increasingly own cryptocurrency due to historical reasons and the forward-looking views of young consumers.
Emerging economies have found more compelling reasons to implement a central bank digital currency than advanced economies.
Incumbent players in the payments industry have started to respond to the rise of “buy now, pay later” payment options.
Low-income consumers rely on costlier methods to pay bills, even if they have bank accounts.
“Buy now, pay later” products offer benefits to consumers and merchants, but not without risk.
Digital, Financial, and Health Insurance Exclusion Experienced by Low-Income Households
By Fumiko Hayashi and Rebecca Ruiz
Low-income households are more likely to lack home internet access, bank accounts, and health insurance, especially if they are less-educated and Black or Hispanic.
Déjà Vu All Over Again: What the Return of Private Currencies Could Mean for Central Banks
By Susan Zubradt and Jesse Leigh Maniff
Private digital currencies, or “crypto-assets,” present familiar challenges for central banks.
Demand for contactless payments increased during the COVID-19 pandemic.
To reach the unbanked population, a central bank digital currency should be designed with specific needs in mind.
The success of Australia, France, and the United Kingdom in mitigating remote card payment fraud may hold lessons for the United States.
In the Nick of Time: The Rise of Earned Wage Access
By Julian Alcazar and Terri Bradford
Earned wage access programs have gained new popularity during the COVID-19 pandemic, but may involve risks.
Neobanks have the potential to disrupt the traditional banking model by offering innovative features and design within a digital interface.
A central bank digital currency designed to address one issue, such as financial inclusion, may have difficulty in achieving other goals.
How the COVID-19 Pandemic May Reshape the Digital Payments Landscape
By Ying Lei Toh and Thao Tran
The COVID-19 pandemic may accelerate the adoption of digital payments.
The 2018 Supreme Court ruling that American Express did not violate federal antitrust law has inspired debate among scholars over the court’s economic analysis.
The emergence of private digital currencies highlights concerns and opportunities for central banks.
As the retail payments system continues to evolve, the KC Fed’s Payments System Research group looks ahead to new developments.
Initiatives facilitating QR code-based mobile payments in Japan, Singapore, and Hong Kong may address some pain points of banks, nonbanks, and merchants, but whether they address consumers’ depends on factors such as fragmentation and overall digital commerce experience.
PDFManaging Fraud in Remote Payments
By Richard J. Sullivan
Following the rollout of new chip cards and ongoing growth in e-commerce, merchants and policymakers are seeking ways to blunt a likely surge in remote payment fraud.
As payment card networks seek to balance the benefits of collaboration against allegations of anti-competitive behavior, efforts to improve payments security may be hindered by the threat of legal action.
After coming up short against nonbanks in two previous rounds of the fray over P2P payments, banks appear to be poised to go toe-to-toe this time around.
This article offers highlights from the Federal Reserve Bank of Kansas City's fifth international payments conference, "The Puzzle of Retail Payments Security: Fitting the Pieces Together to Protect the Retail Payments System," hosted June 25-26, 2015.
This article considers how the upcoming shift from magnetic stripe to chip technology may affect the survival of card-based payment innovations.
This article summarizes the global trends in public authority involvement in payment card pricing and rules, examines reasons for the shift to regulatory measures, and considers potential implications for the United States.
PDFFees, Fraud and Regulation: Forces of Change in the Payment Card Industry
By Fumiko Hayashi and Richard J. Sullivan
This article summarizes analysis from three recent Economic Review articles on how changes to card payment technology and debit card regulation will affect the U.S. retail payments system in years to come.
This article explores opportunities and risks emerging from a relatively new phenomenon: The rise of commerce, banking and payments services marketed and offered through social media.
This article reviews the current landscape for payment discounts and surcharges, considers whether they influence consumer payment choice, and offers several policy responses.
PDFAn Update on Interchange Legislation in the United States
By Christian Hung
This article provides a summary of recent developments in interchange legislation in the United States as well as the recently released Government Accountability Office report detailing its findings on interchange fees.
PDFThe Benefits of Collecting and Reporting Payment Fraud Statistics for the United States
By Richard J. Sullivan
This article argues that publication of fraud statistics helps the payment industry to coordinate security efforts, provides useful information for policymakers, and helps to promote consumer confidence in payments. However, while other countries regularly publish such statistics, it is an open question whether they will become available in the United States.
This article takes a backward glance at some of the early emerging payments nearly a decade after their introduction and examines their status today and where they may be heading.
This article describes some of the means by which individuals remit funds internationally -- informal networks, money transfer operators, financial institutions and other options -- and discusses some of the factors that may influence the choice of provider.
This article discusses the origin and roles of merchant acquiring; the models for acquiring; and relevant developments in legislation, PCI compliance, and the Single Euro Payments Area.
This article provides an update on developments in interchange fees in the United States and recent public authority involvement in interchange fees abroad.
This article by Terri Bradford summarizes the beginnings of the ACH, exciting changes underway today, and possible further changes in the future.
This article provides and overview of the mobile payments landscape in Japan and South Korea and discusses developments in the United States.
This article discusses the various uses of stored-value cards and the different degrees of their use and acceptance four years after their introduction.
This article examines mobile-phone payment and banking alternatives in the United States. It explores prospects for growth, available technologies, and the outlook for one or more technologies coming to dominate the market.
PDFThe U.S. Retail Payments System in Transition: Federal Reserve Initiatives
By Barbara S. Pacheco
This article explores the changing landscape of U.S. retail payments: trends, the Fed's role, and the future of payments.
This article examines the potential for fraud associated with various "traditional" payment methods and the protective measures that consumers should take when using them.
This article explores the evolution of contactless payments, whose use will likely increase and could have an important impact on the payments landscape.
This article looks at the many roles nonbanks play in payments activities and the oversight questions that arise as a result.
PDFEarly Experience with Check 21
By Larry Taft and Nathan Halmrast
This article looks at some of the early developments since the Check 21 law became effective and some of the remaining barriers to a more efficient and electronic check clearing system.
There are various costs associated with accepting alternative payment types. The costs associated with these payment types are a serious merchant consideration.
PDFPayment Services and the Evolution of Internet Banking
By Richard J. Sullivan
A review of bank Web sites conducted by Payments System Research staff shows how essential online banking has become to the payments system.
PDFA New Era
By Stuart E. Weiner
The U.S. Payments System has entered a new era — one that is witnessing a marked decline in the use of paper checks and a sharp increase in the use of electronic payments.