1. Update from the Faster Payments Task Force
July, 2017

2. Strategies for Improving U.S. Payment System
Focuses on Improving Payment System Speed,
Efficiency, and Safety from End-to-End
Five desired outcomes developed with extensive payment stakeholder input
Speed
Security
Efficiency
International
Collaboration
© 2017 Federal Reserve Banks. Materials are not to be used without consent.

3. Achieving Desired Outcome for Safe, Ubiquitous,
Faster Payments Capabilities for the U.S.
Desired Outcome
a safe, ubiquitous, faster payments capability in the United States
Strategies Paper
Task Force Work Efforts
Address Challenges and Opportunities
© 2017 Federal Reserve Banks. Materials are not to be used without consent.

4. Task Force Work Plan and Key Accomplishments
© 2017 Federal Reserve Banks. Materials are not to be used without Federal Reserve consent.

5. Faster Payment Task Force Overview
The Faster Payments Task Force work is helping to accelerate and enhance implementation of real-time payment capabilities in the United States
Desired Outcome
a safe, ubiquitous, faster payments capability in the United States
Currently available on FedPaymentsImprovement.org
Collaborative Work Efforts
Final Report
Part Two
Challenges and Opportunities
Solution Proposals and Qualified Independent Assessment
Final Report
Part One
Published in July 2017 in the Final Report
Capability Showcase
Effectiveness Criteria
© 2017 Federal Reserve Banks. Materials are not to be used without Federal Reserve consent.

6. Faster Payments Effectiveness Criteria Developed as a description of stakeholder needs that can be used to assess faster payments solutions and as a guide for innovation in the payments industry. 
Ubiquity
U.1 Accessibility
U.2 Usability
U.3 Predictability
U.4 Contextual Data Capability
U.5 Cross-Border Functionality
U.6 Multiple Use Cases
Speed (Fast)
F.1 Fast Approval
F.2 Fast Clearing
F.3 Fast Availability of Good Funds to Payee
F.4 Fast Settlement among Depository Institutions and Regulated Non-bank Account Providers
F.5 Prompt visibility of payment status
Efficiency
E.1 Enables Competition
E.2 Capability to enable value- added services
E.3 Implementation Timeline
E.4 Payment Format Standards
E.5 Comprehensiveness
E.6 Scalability and Adaptability
E.7 Exceptions and Investigations Process
Safety and Security
S.1 Risk Management
S.2 Payer Authorization
S.3 Payment Finality
S.4 Settlement Approach
S.5 Handling Disputed Payments
S.6 Fraud Information Sharing
S.7 Security Controls
S.8 Resiliency
S.9 End-user Data Protection
S.10 End-user/Provider Authentication
S.11 Participation Requirements
Governance
G.1 Effective governance
G.2 Inclusive governance
L.1 Legal Framework L.4 Data privacy
L.2 Payment System Rules L.5 Intellectual property
L.3 Consumer Protections
Legal
© 2017 Federal Reserve Banks. Materials are not to be used without Federal Reserve consent. 6

7. Capability Showcase
Short industry videos of capabilities that could support end-to-end faster payment solutions
Capabilities may support one or more of the Effectiveness Criteria
Offers opportunity for capability providers to collaborate
Educates task force on marketplace capabilities
© 2017 Federal Reserve Banks. Materials are not to be used without Federal Reserve consent. 7

8. Task Force Final Report Part One
The U.S Path to Faster Payments, Final Report Part One: The Faster Payments Task Force Approach
Provides an overview of:
The background and process of the task force’s work
Task force motivation for pursuing faster payments solutions in the context of the current payments landscape.
© 2017 Federal Reserve Banks. Materials are not to be used without Federal Reserve consent. 8

9. Faster Payments Solution Proposal and Assessment Process
© 2017 Federal Reserve Banks. Materials are not to be used without Federal Reserve consent.

10. Proposal Submission and Assessment
Any Faster Payments Task Force participant was eligible to submit a proposal for an end-to-end payments solution
Assessment undertaken by Qualified Independent Assessment Team (QIAT)
Qualitative assessment against the Effectiveness Criteria
Task forces provided commentary on the assessments and proposals
© 2017 Federal Reserve Banks. Materials are not to be used without Federal Reserve consent. 10

11. The Faster Payment Solution Proposal and Assessment Process was Designed to Facilitate Diverse Stakeholder Input
22 proposers submitted solutions for QIAT assessment
19 chose to be assessed by task force participants
16 opted-in for inclusion in the task force’s final report
The goal of this process is to create broad adoption of these capabilities by consumers and businesses over the coming years.
© 2017 Federal Reserve Banks. Materials are not to be used without Federal Reserve consent. 11

12. The U.S. Path to Faster Payments Final Report Parts One and Two
© 2017Federal Reserve Banks. Materials are not to be used without Federal Reserve consent.

13. Final Report Development
The vision for the Final Report is to influence stakeholders to continue moving toward faster payments capabilities for the United States
Final Report Development
Task Force Process
Effectiveness Criteria
Capability Showcase
Proposal Submission, QIAT Assessment, and Task Force Input
Challenges, Opportunities, Goals and Recommendations
Final Report Content
Part One
Landscape and Benefits
Task Force Background and Process Overview
Published - January 26, 2017
Part Two
Proposals and Assessments
Challenges and Opportunities
Recommended Next Steps
Published – July 21, 2017
© 2017 Federal Reserve Banks. Materials are not to be used without Federal Reserve consent.

14. The U.S. Path to Faster Payments Final Report Objectives:
To present the results of the task force for implementing a safe, ubiquitous, faster payments capability in the U.S.
To propose recommendations and approaches for advancing the payments system
To champion the industry and stakeholders to take steps toward implementation and adoption of a faster payments capability
To suggest ideas to maintain momentum and continue collaboration for faster payments
© 2017 Federal Reserve Banks. Materials are not to be used without Federal Reserve consent.

15. Part Two of the Final Report: Developed around Foundational Themes
Potential Questions to be Addressed
Broad Adoption
Education
Stakeholder collaboration
Interoperability
Rules and standards
Role of directories
Integrity and Trust
New technology
Reputational risk
Developing the Ecosystem
Governance
Industry catalyst
© 2017 Federal Reserve Banks. Materials are not to be used without Federal Reserve consent. 15

16. Final Report - Recommendations Ten Recommendations in Three Key Areas
Governance and Regulation –
Interim Collaboration Working Group – establish a formal governance framework
Establish rules and standards
Evaluate laws and regulations
Infrastructure Improvements -
Develop design for directory services
Request the FRB to develop 24x7x365 settlement services and to assess other operational roles
Sustainability and Evolution –
Address evolving security threats and foster continuous innovation
Fraud detection/reporting/information sharing; advocacy/education; cross-border RTP; emerging technologies
© 2017 Federal Reserve Banks. Materials are not to be used without Federal Reserve consent.

17. Final Report – A Call to Action
To All Payment System Stakeholders – Make the Faster Payments Vision a Reality
Embrace and promote the vision and the Effectiveness Criteria
Actively participate in the ongoing dialogue
Contribute to work group efforts and deliverables
Take steps to make every organization faster payments ready by 2020
How to Engage
Go to FasterPaymentsTaskForce.org
Learn more about the recommendations
Sign-up to follow and/or engage in the next phase of faster payments work
© 2017 Federal Reserve Banks. Materials are not to be used without Federal Reserve consent.

18. Questions?