Large American companies are for fast bank payment
In December 2018, it became known about the initiative of major IT market players: Apple, Google, PayPal and a number of others, to accelerate the creation of a fast payment system in the United States. For this purpose, the high-tech corporations even merged into the association Financial Innovation Now (FIN).
Indeed, the banking system of the state is outdated and this could jeopardize the competitiveness of the economy in the world market. It is known that the overwhelming majority of the population of the United States use banking services that are clumsy compared to Europe. Some organizations have already implemented services that help speed up payments with customers. In particular, the American financial holding, one of the four largest financial organizations of the United States, JPMorgan Chase, introduced corporate payments on the blockchain using the internal JPM Coin cryptocurrency. It should be noted that this structure makes corporate payments in the amount of $5 trillion (the share of the cryptocurrency is not disclosed).
Signature Bank (New York) introduced a digital coin for real time payments. This initiative appeared only in the form of an option (against the background of distrust of cryptocurrencies). However, many corporate customers have accepted the novelty with approval. Every day the bank makes corporate payments exceeding several tens of millions of dollars. The above examples show that the American economy needs a single system of fast payments. Private initiatives of banks create some disparity of technologies, which will not be easy to reduce to a single denominator in the future.
Financial regulator will be responsible for fast bank payment
But let’s go back to the open letter from the participants of the Financial Innovation Now initiative. According to the participants of the high technology market, the Federal Reserve should be the single body controlling the system of fast payments. Access to payment systems in the United States today is possible only through intermediary services. Participants of Financial Innovation Now note that excessive bureaucracy of the banking system has led to increased costs and increasing of the “human factor” in the industry. But the Federal Reserve System is not only entrusted with control over the system of fast bank transfers. It has not yet been created and the process of fulfillment of wishes of IT companies in life also lies on the shoulders of the financial regulator.
It takes time to build a new payment network, so FIN participants asked about the possibility to make gross payments in mutual settlements with partners bypassing banks. The FIN initiative coincides with the general trend in which central banks of the leading countries of the world began to promote fast transaction systems. There is a perception that real changes are possible only if regulators force banks to abandon brokering services that bring commercial benefits to them.