Every time you use your phone to pay back a friend for lunch or pay your babysitter with a tap, you’re reminded we have the technology to move money instantly. But behind the scenes, much of America’s financial infrastructure still runs on payment rails that take days to officially settle transactions.

Despite the U.S.’s position as the global leader in innovation in the technology industry, including financial technology companies, the U.S. is lagging well behind other nations in the adoption of instant payment technology due to an outdated regulatory framework.

The Cost of Coming in Last

In countries like the U.K., India, and Brazil, real-time payments are the norm. Here in the U.S., many people still wait days for their paycheck to clear or pay a convenience fee just to access their own money faster.

Our outdated payments system has real impacts on people and small businesses who need to make payments quickly without paying high transaction fees that add up. For instance, it can harm small businesses with tight margins who struggle to make payroll when waiting for customer payments to land. It also requires additional trust from vendors who want to know that a transaction will settle when they do not receive the money in real time.

We’re not just losing time. We’re losing trust, efficiency, and economic opportunity.

A Modern Economy Needs a Modern Payments System

If America wants to lead in the 21st-century economy, we need to start with the basics. That means:

• Opening the federal payments system to more institutions, so competition can drive innovation and better service.

• Creating a modern payments charter to allow responsible companies to offer fast, safe payments without navigating a patchwork of outdated regulations that are not relevant for their business.

During the Financial Technology Association’s (FTA) CEO Summit top lawmakers, consumers and business leaders across the U.S. expressed a similar concern: that without congressional action, America risks falling further behind other peer nations – and potential adversaries – in the digital payment space.

Both the U.S. House Financial Services Committee Chairman French Hill (R-Ark.) and business leaders in financial technology pointed to reform needed in the digital payment space so America can lead in increasing speed, improving security, and lowering costs for consumers and businesses.

This isn’t about catching up with the rest of the world. It’s about surpassing them, with a payment system that reflects American values of fairness, speed, and opportunity for all.

Everyone Has a Role

We don’t need another decade of studies or half-measures. We need leadership, public and private, to clear the barriers that slow down our money and hold back our economy.

At ASAP, we’re working to make faster, fairer payments a reality for every American. Because no family should face late fees waiting for a paycheck. No small business should go under waiting on a deposit. And no country as ambitious as ours should settle for second place.

Let’s make America first in finance by building a system that moves money at the speed of life.

Read more about concerns expressed by top lawmakers, consumers, and business leaders at the FTA’s recent CEO Summit HERE.

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