After a year of extensive research and input-gathering the Federal Reserve banks have completed their study of desired outcomes, strategies, and tactics in the future of U.S. payments.

The effort began last fall with release of the "Payment System Improvement — Public Consultation Paper," which solicited comments on gaps and opportunities in the payment system. The Federal Reserve also completed a number of research initiatives designed to inform future plans for payment system improvements.

One of these research efforts explored the needs related to faster retail payments, one of the consultation paper's desired outcomes, and included insights on end-user demand for specific payment attributes and a consultant-led assessment of alternatives for speeding U.S. payments.

A second initiative involved identifying gaps and opportunities related to payment system security.

Finally, an analysis of the business case to adopt the ISO 20022 international payment standard for the U.S. payment marketplace was conducted in collaboration with three other industry organizations — The Clearing House Payments Company; NACHA — The Electronic Payments Association; and the Accredited Standards Committee X9.

The Federal Reserve plans to use research conclusions and stakeholder feedback to prepare and share in the coming months a roadmap for payment system improvements.

"Staff and leaders from around the Federal Reserve System are working diligently to craft a thoughtful and effective path forward," said Narayana Kocherlakota, president of the Federal Reserve Bank of Minneapolis and chair of the Financial Services Policy Committee.

"[W]e look forward to ongoing collaboration with stakeholders this year and beyond to improve the ability of the U.S. payment system to meet evolving end-user needs for speed, efficiency and security."

A representative from the Fed will present a draft of the forthcoming study in a Town Hall meeting this Thursday at the ATM & Mobile Innovation Summit in Washington, D.C.