Catenaa, Tuesday, April 21, 2026- A bipartisan bill introduced in the US House of Representatives would allow qualified nonbank payment providers to access Federal Reserve payment systems directly, a move supporters say could cut fees, speed up transactions, and expand competition in digital payments.
The Payments Access and Consumer Efficiency Act, known as the PACE Act, was introduced by California Reps. Sam Liccardo, a Democrat, and Young Kim, a Republican. The bill would create a federal framework for nonbank payment firms, including money transmitters and digital asset companies, to gain direct access to services such as Fedwire, FedNow, and FedACH.
Lawmakers say the bill is designed to modernize the US payment system and reduce costs for consumers and businesses.
Liccardo said broader access to advanced payment systems could reduce the burden of bank fees for families and deliver faster, more reliable service.
Under the proposal, nonbank firms would be supervised by the Office of the Comptroller of the Currency. Companies would need to meet reserve, compliance, recordkeeping, and risk management standards.
The bill requires payment providers to maintain 1:1 reserves and hold multiple state licenses before qualifying for federal approval.
If approved, firms could access Fedwire for high-value transfers, FedNow for instant payments, and FedACH for automated clearing services.
FedNow operates around the clock and allows near-instant settlement between institutions. FedACH is widely used for payroll, bill payments, and bank transfers. Fedwire is used for larger and more urgent transfers.
The bill is one of the latest efforts in Washington to expand competition in financial services. Supporters say traditional payment systems are often too expensive, too slow, and too dependent on large banks.
Many fintech firms have argued that they already meet strong state-level requirements but still face barriers when trying to access national payment infrastructure.
Direct access to Federal Reserve payment rails has traditionally been limited to banks and credit unions with Fed accounts.
Many fintech firms and crypto payment companies currently rely on partner banks to reach those systems. That structure often increases costs and slows settlement times.
For smaller companies, dependence on banking partners can create delays, higher compliance costs, and added risk if those relationships end suddenly.
The bill arrives as digital payment firms push for more direct access to financial infrastructure. It also follows recent Federal Reserve discussions about allowing limited nonbank access to payment systems.
The measure reflects growing competition between banks, fintech companies, and digital asset firms over who controls the next generation of payment infrastructure.
The legislation also comes at a time when real-time payments are becoming more important in the global economy. Countries in Asia and Europe have already expanded instant payment networks that operate outside normal banking hours.
US lawmakers have faced pressure to keep pace with those systems and prevent the country from falling behind in payment innovation.
The proposal has drawn support from crypto and fintech groups.
The Crypto Council of Innovation said the bill could strengthen competition and support responsible payment innovation.
The Blockchain Association called the legislation an important step for digital asset payment companies that have long been excluded from the same infrastructure available to banks.
Supporters argue that direct access would allow stablecoin issuers, crypto payment processors, and other nonbank firms to offer cheaper and faster services.
Some industry observers say the bill could work alongside the GENIUS Act by giving regulated stablecoin firms a clearer path into mainstream payment networks.
Crypto firms have long argued that access to the banking system remains one of the biggest barriers to growth. Direct access to Fed payment rails could help reduce that problem.
Payment companies may also be able to settle transactions faster and reduce their dependence on third-party banking partners.
That could be especially important for firms operating in cross-border payments, digital wallets, and stablecoin transfers.
Critics may argue that direct access to Fed systems could raise new risks around fraud, cybersecurity, and consumer protection.
Real-time systems such as FedNow operate continuously, making fraud prevention more difficult once payments are completed.
Banks may also oppose the bill because it could reduce their role as intermediaries between consumers and the Federal Reserve system.
Some policymakers may worry that allowing nonbanks into core payment systems could increase operational risks if those firms lack the same financial strength as banks.
Others may question whether state-licensed money transmitters should receive access to infrastructure that has traditionally been limited to federally supervised institutions.
The debate is likely to focus on whether nonbank payment firms can meet the same safety and compliance standards expected of banks.
The PACE Act still faces a long legislative process before it could become law.
Lawmakers will need to balance the push for faster and cheaper payments against concerns about security and financial stability.
Even so, the bill marks a growing shift in how Congress views payment systems.
Rather than limiting access to banks alone, lawmakers are increasingly considering whether regulated fintech and crypto firms should play a larger role in the US financial system.
If passed, the measure could reshape how Americans move money and how digital payment companies compete in the years ahead.
