A Faster, More Affordable Financial System for America
In the current financial system, only legacy banks have access to the federal payment rails, which results in friction, delays, and unnecessarily high costs. While the rest of the world modernizes and expands access to regulated payment firms, America is falling behind. There’s a better way, and Congress can help us get there with the PACE Act (H.R. 8395).
The Alliance for Secure and Accessible Payments (ASAP) advocates for the modernization of the U.S. payment system to foster innovation and competition. Learn more about what this would mean for consumers and small businesses.
Increase Speed & Efficiency
Consumers and small businesses often save time and money by using digital payment platforms to pay bills and transfer money. But these platforms face one major hurdle: they lack an on-ramp to the federal payment system. Currently, digital platforms must partner with a legacy bank to settle transactions, adding cost, complexity, and friction to the system.
Introducing competition to the payment services system could allow money transfers to happen in milliseconds, not one-to-three business days, lowering costs, reducing friction,and providing more options for consumers. Less hassle means more time and more savings.
Boost America’s Competitive Edge
America can’t afford to fall any further behind in adopting modern payment technology. The US is the only G7 country without a faster payments regulation.
U.S. banking laws are based on legislation from the 1800s, and the current U.S. payment system was built for a bygone era of paper checks, not today’s tech-driven world.
Modernizing the payment system will help the U.S. regain global leadership in financial tech, boost competition, lower costs for consumers and small businesses, and drive economic growth.
Lower Payment Costs
Allowing regulated payment companies to apply for access to the federal payment systems will result in more digital payment alternatives to traditional, more costly, payment methods. Increasing competition will lower costs for Americans.
It will also give consumers and small businesses more options for financial platforms — providing lower costs and driving economic growth.
Open Up the Payment Bottleneck
Without Congressional action that allows payment innovators to apply for access, only legacy banks have access to the federal payment system. This concentrates transactions in the hands of fewer players, resulting in less competition, higher costs for consumers and greater risk to the financial system.
Making the federal payment system more competitive will break the bottleneck on payments, allowing innovators to provide faster, cheaper, and better alternatives.
Join the Coalition
We need your help to improve America’s financial payment system. It’s time to build a more efficient, competitive system that works for all Americans. Join our dynamic coalition today.