Endpoint: Leading the Industry to “Faster”
Published: June 1, 2014
NACHA President and CEO Janet O. Estep says payments need to speed up and moving funds faster can better meet user expectations, while reducing counter-party risk and supporting innovation.
Simply saying that users want faster payments isn’t enough, says Jan Estep, who outlines NACHA’s new proposal for same-day settlement.
The phased approach enables functionality to build over time, creating value for participants at each step along the way.
Jan Estep is president and chief executive of NACHA—The Electronic Payments Association, Herndon, Va.
Is faster better? If you listen to the little girl in the AT&T commercials, it is. In her mind, speed means you won’t get bitten by werewolves.
While we don’t literally have wolves at our heels, the reality is that payments need to speed up. Moving funds faster can better meet user expectations, while reducing counter-party risk and supporting innovation. Moreover, it offers opportunities to ensure the U.S. stays in sync with other countries as they, too, upgrade and move to faster systems.
Today, the automated clearing house network serves as the backbone for payments. It not only supports native ACH payments like Direct Deposit and Direct Payment, but it also enables settlement functionality for credit and debit cards, ATM transactions, and beyond. By speeding up processes within this ubiquitous foundational system, we provide greater opportunity for all.
But what do we actually mean by speed? What is “faster?”...