There’s a New Payments Advocate in Town – and it’s the Government!

They've formed something called the CPTC - and, the PIC.  

But... What do they do?

If you follow this blog, you know I’m all about electronic payments.  But, I’ll bet you didn’t know that as of a month ago, the government is all about electronic payments, too!

It’s true.  On March 19^th, Washington issued a press release announcing the formation of a new discussion group, the bipartisan Congressional Payments Technology Caucus (CPTC).  The bipartisan caucus, headed by four US Representatives, will discuss how innovations in payment technology affect all consumers, especially the segment of consumers who aren’t tied to any physical bank, as well as data security.

As well, on April 9^th, four US Senators formed the bipartisan Payments Innovation Caucus (PIC).  Like the CPTC, the PIC will explore data security trends, general payment innovations, and how those innovations protect consumers.

Both the CPTC and the PIC exist not only to foster discussion among congressmen, but to spread awareness of payments technology issues and, in doing so, move contents of the discussions onto the appropriate law-making forums.

What does this mean?

I say it’s about time Congress got on board with electronic payments.  I guess after years of silently developing a hold on our collective hearts, first with simple credit cards, then with mobile payments and digital wallets - and then breaking many of them with those nasty data breaches - someone had to take notice.

It’s a very good thing, because according to an article from Senator Gary Peters (D-MI), a staggering 70% of consumer spending happens electronically (although the difference between card payments and ACH transactions isn’t specified).  He says that by 2017, consumers will be spending $7.3 trillion per year electronically.  (For more stats on current usage as well as the advancement of payment security in general, you can check out this white paper, Payment Security and Beyond in 2015.)

So, does this mean law-makers will take action that involves credit card payments and data security?  Will the government’s involvement in payments mean more support for small businesses?  A global shift in credit card processing costs?  All things remain to be seen, and, since we’re talking about a government operation, we can expect a snail’s pace.  But, it’s something.