WASHINGTON, D.C. — Today, U.S. Representatives Young Kim (CA-40) and Sam Liccardo (CA-16) introduced the Payments Access and Consumer Efficiency (PACE) Act to help Americans send and receive money faster and with fewer fees by modernizing how payment companies access payment rails.
Today, when Americans use a payment app to send or receive money, their transaction often passes through multiple layers before it reaches its destination, slowing down payments and adding extra costs along the way. The PACE Act addresses this by enabling qualified providers to access federal payment systems directly, reducing delays and lowering costs for consumers and small businesses.
“Whether it’s splitting a bill, paying rent, or waiting on a paycheck to clear, Americans are often stuck dealing with delays and increased fees due to outdated payment infrastructure,” said Rep. Young Kim. “Hardworking Americans shouldn’t have to wait days to access their own money or pay extra just to move it. My PACE Act modernizes our system to deliver faster payments, lower costs, and helps families and small businesses keep more of their hard-earned money.”
“We can reduce the burden of bank fees borne by too many American families by enabling broader access to innovative payment systems that deliver cheaper, faster, more reliable service,” said Rep. Liccardo. “I’m proud to partner with Young Kim on this bipartisan PACE Act, to modernize our payment system for the benefit of millions of cash-strapped Americans.”
This legislation has been endorsed by Financial Technology Association, Blockchain Association, The Digital Chamber, and The Crypto Council For Innovation.
“American consumers and small businesses shouldn’t have to wait days for a direct deposit to clear or a vendor check to arrive in the mail. Allowing regulated payment firms access to federal payment rails will enable faster transactions, lower costs, and more seamless experiences on par with other leading economies. We thank Congresswoman Kim and Congressman Liccardo for their leadership on this important effort to upgrade our national payments infrastructure,” said Penny Lee, President and CEO of the Financial Technology Association.
“For too long, digital asset payment companies have been locked out of the same financial infrastructure that their competitors have access to. The PACE Act allows qualified nonbank providers to obtain direct access to Federal Reserve payment rails, enabling faster, less expensive, and more competitive payment services for American consumers and businesses. We commend Representatives Kim and Liccardo for this important step forward,” said Summer Mersinger, CEO, Blockchain Association.
“The Digital Chamber, the world’s largest digital asset and blockchain trade association, is proud to support the bipartisan PACE Act as a thoughtful, forward-looking proposal to modernize access to America’s core payment rails. By creating a pathway for qualified payments companies to access a subset of Federal Reserve payment services through a tailored account structure, the bill would help ensure our payments infrastructure evolves alongside innovation in a safe and responsible way. We applaud Reps. Kim and Liccardo for their leadership on this important effort to strengthen and modernize the U.S. payments system,” said Cody Carbone, CEO, The Digital Chamber.
CCI supports Rep. Kim and Rep. Liccardo’s efforts to modernize the payment landscape through the PACE Act, which would allow businesses with 40 or more money transmitter licenses to comply with a uniform federal regulatory framework under OCC supervision. The PACE Act would also improve competition by expanding access to Federal Reserve payment services to well-regulated institutions that meet strong consumer protection standards. CCI looks forward to working with Congress to advance responsible payments innovation and ensure that Americans benefit from secure and efficient payments options,” said Ji Hun Kim, CEO of the Crypto Council for Innovation (CCI).
Key provisions of the PACE Act include:
- Streamlined federal registration – Qualified payment companies can apply for federal registration with clear standards and firm government review deadlines;
- Strong consumer protections – Consumer funds must be fully backed, held separate from company assets, and cannot be reused or put at risk;
- Direct access to federal payment networks – Approved companies can directly access certain federal payment systems;
- Robust oversight and enforcement – Federal regulators can examine and hold registered payment companies to high standards;
- Consumer-first insolvency protections – If a company fails, consumers are prioritized when recovering funds.
Read bill text HERE.
