Loretta Mester, Speech: An Update on the Federal Reserve’s Efforts to Modernize the Payment System

“A well-functioning and secure payment system is vital to our economy. As we modernize the payment system, it is important to remember that the foundation of a successful payment system is the public’s confidence in it: confidence that it will be available whenever the customer needs it; confidence that it will efficiently route and settle payments; confidence that it will be resilient against cyber-attacks and fraudulent actors; and confidence that it can be relied upon without having to know the intricacies of the infrastructure behind it. This confidence requires trust in the financial entities offering payment services. Today, the American public does have confidence in the payment services offered by the Federal Reserve System and the industry. But we cannot take that for granted. As the payment system evolves, the Fed, the industry, and end users will need to continue to collaborate to ensure that the modern payment system lives up to its promise of being efficient, safe, resilient, and available to all. That’s the best way to maintain the confidence of the public we serve.”