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Faster Payments: Does The Fed Have A Hidden Agenda?

PYMNTS

This new feature, available to PayPal customers in good standing, leverages the company’s partnership with Chase, and Chase’s connection to The Clearing House’s RTP network, to move money instantly into the bank accounts of consumers and SMBs. And finally, that the banks and the card networks are the big losers.

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The Big Tech Canary In The Faster Payments Coal Mine

PYMNTS

The letter highlighted that access to the payments systems today is only possible through incumbent intermediaries – the banks and the card networks – which have not kept pace with the needs of consumers and businesses. It flew in on Dec. 14, the Friday before the week before Christmas, so you might not have noticed.

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Breaking Down The Faster Payments Construct

PYMNTS

Two new same-day settlement windows will be added to the ACH Network, which will increase the actual movement of funds between all those financial institutions from once a day (at the beginning of the day) to three times a day. Along with the funds movement, a lot of information passes through the ACH Network right with the payment.

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The Roil Over B2B Payments Rails

PYMNTS

Rails and railroads, Buffet wrote in Berkshire’s 2016 Annual Letter, are four times as fuel efficient as trucks , requiring only a single gallon of diesel fuel to move a ton of freight 500 miles. Largely immune to external threats like weather, driver fatigue and driver shortages, railroads can also mitigate delivery delays and uncertainty.

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