Fintechs urge Congress to grant Federal Reserve payment access
At a Sept. 25 panel, Ramp and Stripe urged lawmakers to grant nonbank firms direct access to Federal Reserve payment rails, citing Ramp’s $200 billion yearly corporate payment volume while noting that Stripe currently lacks a Federal Reserve master account. Ramp said about 90% of its transactions rely on the Fed ACH system, and warned that without direct access its payment costs could rise for businesses using its platform.
The bipartisan PACE bill, introduced in April by Rep. Young Kim, would let fintechs use Fedwire, FedNow, and FedACH under oversight from the Office of the Comptroller of the Currency. Although the bill has Republican and Democratic cosponsors, it lacks a Senate companion and faces slim prospects before the November midterm election. Under current rules, nonbank fintechs must obtain state-by-state money transmitter licenses to offer payments, a process the legislation aims to replace with a federal registration. The Federal Reserve is also reviewing its practices per a May executive order from President Trump to broaden fintech access to U.S. payment rails. The Financial Technology Association called the bill a priority for the next Congress, citing continued market demand for faster, cheaper payments.
“even though we settle lots of payments every day, and it would be really efficient and really safe for our users to be able to do so,” Jonah Crane, head of global regulatory and policy at Stripe said.
“We think that (the bill) would enable faster, cheaper payments for consumers and for the businesses that we serve,” Alissa Kratsios, Ramp’s head of global policy said.
Currently, many fintechs that are not banks must secure money transmitter licenses on a state‑by‑state basis to operate. The Federal Reserve is simultaneously working to accommodate an executive order signed by President Trump in May that directs the bank to review its practices with the aim of opening U.S. payment rails to more fintechs.
What we know
Ramp processes about $200 billion in corporate payments each year.
About 90% of Ramp's payments use the Fed ACH rail.
The Payments Access and Consumer Efficiency (PACE) bill was introduced in April by Rep. Young Kim.
Executives spoke at a Sept. 25 panel discussion.
The U.S. is the only G7 member nation that does not allow direct payment access for non‑bank firms.