University Bank’s Federal Reserve Faster Payments Task Force Proposal

The Federal Reserve System’s has launched a program of work through the Faster Payments Task Force to engage a diverse array of stakeholders in advancing the work outlined in  Strategies for Improving the U.S. Payment System, published in January 2015. The mission of the Faster Payments Task Force is to identify and assess alternative approaches for implementing safe, ubiquitous, faster payments capabilities in the United States.

The Federal Reserve’s Faster Payments Task Force established the Faster Payments Effectiveness Criteria, a framework that the Faster Payments Task Force will employ to assess alternative solutions for faster payments. The Faster Payments Task Force then issued a Request for Proposals that meet the Faster Payments Effectiveness Criteria.

University Bank submitted a formal proposal under the Faster Payments Task Force Request for Proposals that we believe fully meets each of the 36 Faster Payments Effectiveness Criteria.  University Bank’s proposal envisions the creation of a new U.S. payment system branded “PayThat”.  The PayThat Payment System is a bank-centric, true peer-to-peer, irrepudiatable, payment system that uses any email and text message based application platform to settle transactions and transmit associated transaction data securely even over an insecure network such as the Internet.  PayThat can be used for transactions as small as fractions of a penny or as large as any amount.

PayThat uses a cash purse system enhanced with end to end encryption of data at motion and at rest.  During transactions good funds are push payments pushed from user to user.  Adoption use cases have been developed that will drive rapid adoption of PayThat nationwide.

PayThat uses a superior “Data-Centric” approach to encryption and a “network of networks” architectural approach leveraging XML and XML tagged data pushed to edge servers from legacy applications, extending the usefulness of legacy applications and dramatically lowering cost of adoption for innovative solutions.

An executive summary and PowerPoint are available for download.

For more information, including a copy of the detailed business plan and adoption plan for the proposed PayThat payment system, available under a mutual non-disclosure agreement, please contact University Bank President & CEO Stephen Lange Ranzini by filling out the following web form.

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