In the United States and around the globe, the financial world can only move as fast as the speed of payment processing. While the U.S. has traditionally had slower payment processing than a handful of other major financial centers, the Federal Reserve is now pushing for more speed.
The Federal Reserve Board recently commissioned a study that took a hard look at the current payment processing infrastructure in the United States and concluded that faster payments are the key to greater efficiency in the U.S. financial sector as it becomes increasingly globalized.
The study, handled by McKinsey, found the following:
About eighteen months ago, the major players in the financial industry were on record saying that there was no issue with the U.S. payment infrastructure. However, recent research by a number of firms has found at least 20 countries with significantly faster payments.
The short list includes the United Kingdom, Singapore, Japan, and Mexico.
Some companies, such as Amazon, are actually achieving the logistics for their orders far faster than they can process payments under the current system. Luckily, ACH’s heavy hitters have already begun putting the next wave of payment processing technology into place.
As you might recall from previous posts in this blog, ACH’s top technical and financial experts have been working on the ACH “speed limit” for quite a while, designing new policies and new procedures to make emerging technologies efficient.
The recent finding by the Fed provides the perfect extra jolt of motivation that could see the goal achieved much sooner than anticipated. Of course, only the best ACH payment processors in the U.S. will be able to take full advantage of the changes to come.
If your business isn’t using ACH yet, it’s time to get involved. The generation of real-time ACH will be upon us soon, and innovative new business models could be the result of this sea change.
Take time to discuss your company’s future with National Processing, the ACH leader. We are devoted to combining speed and service in a way that no other ACH processor can match.
Posted in ACH Processing on Dec 02, 2014