Motives Matter: Examining Potential Tension in Central Bank Digital Currency Designs
As a new central bank liability, central bank digital currency (CBDC) has the potential to address various issues within current payments and financial systems. The motivation behind a CBDC will determine how it is designed; a CBDC designed to achieve one goal, such as broader financial inclusion, may have difficulty achieving other objectives.
Backward Glance While Looking Forward
This article takes a backward glance at some of the early emerging payments nearly a decade after their introduction and examines their status today and where they may be heading.
In the Nick of Time: The Rise of Earned Wage Access
Fintech programs that provide employees access to earned wages ahead of payday have gained popularity during the COVID-19 pandemic. Although consumers benefit from greater financial flexibility, such programs may involve risks.
The Cryptic Nature of Black Consumer Cryptocurrency Ownership
Owning cryptocurrency has become especially popular among Black consumers for reasons related to historical context as well as the forward-looking views of young consumers. While cryptocurrencies have the potential to meet Black consumers’ expectations, they also pose risks to privacy and financial security.
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.
Early experience with Check 21
This article looks at some of the early developments since the Check 21 law became effective and some of the remaining barriers to a more efficient and electronic check clearing system.
Payment services and the evolution of Internet banking
A review of bank web sites conducted by Payments System Research staff shows how essential online banking has become to the payments system.
Neobanks: Banks by Any Other Name?
Neobanks, or digital banks, are bank-like providers of financial services that operate through apps and aim to appeal to different consumer groups through innovative features and design. Whether or not neobanks evolve into full banks, they have the potential to affect the traditional banking model.
Contactless: the next payment wave?
This article explores the evolution of contactless payments, whose use will likely increase and could have an important impact on the payments landscape.
“Give Me Some Credit!”: Using Alternative Data to Expand Credit Access
Fintechs, credit bureaus, and financial institutions are collecting alternative data to develop new scoring models that supplement traditional credit reports. Studies, providers, and pilot programs suggest that these alternative data can improve credit reporting and thereby expand access to fair credit. However, use of alternative data is still low due to both uncertainty about the benefits relative to the cost and consumer concerns about use and privacy.