This report describes the U.S. payment system and identifies where it is changing. Its purpose it to assess how changes in payment arrangements may affect credit unions, their members, and corporate credit unions. These changes in payment arrangements are examined in terms of: service cost, payment access, and asset returns.
What is this research about?
This research identifies areas where the payment system is changing, determines how fast it is changing, and assess the effects that these changes may have on credit unions and their members. To achieve this, the report will outline the basic structure of the U.S. payment system, how it operates, how it has evolved, and how it differs from payment systems in other developed countries. This basic framework is necessary in order to gauge the importance of current and prospective changes to the payment system and what they imply for credit union services, costs, access, and asset returns.
What are the credit union implications?
Some of the implications for credit union services, costs, and returns of these changes in the U.S. payment system include few branch offices needed with electronic payments, possible privatization of Federal Reserve check/ACH options, and lower demand for purchased funds. Further implications are outlines in the report.