Search Results
Briefing
Promoting Payment Inclusion in the United States
In recent decades, entities in both the public and private sectors have worked to promote payment inclusion in the United States, whether by expanding the supply of transaction accounts or boosting consumer demand for them. However, more research and data collection are needed to better define and measure payment inclusion as well as evaluate how effective efforts have been to improve it.
Briefing
Digital, Financial, and Health Insurance Exclusion Experienced by Low-Income Households
Many low-income households are excluded from essential services such as home internet access, bank accounts, and health insurance coverage. We examine to what degree low-income households experience digital, financial, and health insurance exclusion and assess whether education and race are correlated with exclusion. We find that more than 10 percent of low-income households experienced multiple types of exclusion in 2019, with more pronounced results for households with lower educational attainment.
Briefing
Payments System Research: Our 2020 Vision
In this year’s first Payments System Research Briefing, senior vice president Susan Zubradt reflects on the evolution of retail payments and what lies ahead for the KC Fed’s Payments System Research group.
Briefing
The U.S. retail payments system in transition : Federal Reserve initiatives
This article explores the changing landscape of U.S. retail payments: trends, the Fed's role, and the future of payments.
Briefing
The Appeal and Proliferation of Buy Now, Pay Later: Consumer and Merchant Perspectives
Use of buy now, pay later (BNPL) payment products has been growing in the United States. We explore the benefits and risks of BNPL products for consumers and merchants.
Briefing
As Earned Wage Access Grows, Oversight Tries to Catch Up
Earned wage access (EWA) services have grown in popularity as more providers offer them and more businesses and consumers use them. However, the complex fee structures and high costs of EWA, as well as some users’ heavy reliance on these services, have raised concerns. Regulatory and legislative bodies have begun to respond to these concerns, with states taking the lead in proposing or passing EWA legislation.
Briefing
An Update on Interchange Legislation in the United States
This article provides a summary of recent developments in interchange legislation in the United States as well as the recently released Government Accountability Office report detailing its findings on interchange fees.
Briefing
How Much Do Nonbank Transaction Accounts Improve Access to Digital Payments for Unbanked Households?
Nonbank transaction accounts—such as prepaid card accounts or accounts with online payment service providers—can help unbanked households make safe and affordable digital payments. But data suggest that they may not be sufficient to achieve digital payments inclusion. Less than half of unbanked households had these accounts in 2021; the rest either used paper-based transaction products or relied solely on cash.
Briefing
Inclusion by Design: Crafting a Central Bank Digital Currency to Reach All Americans
One motivation for a central bank digital currency (CBDC) is financial inclusion—bringing unbanked Americans into the payments system. To meet this goal, a CBDC would have to be designed to meet the specific needs of the diverse unbanked population.
Briefing
Interchange fees and network rules: a shift from antitrust litigation to regulatory measures in various countries
This article summarizes the global trends in public authority involvement in payment card pricing and rules, examines reasons for the shift to regulatory measures, and considers potential implications for the United States.