Transaction Trends

Two recent events – the recent release of the Treasury Department’s “FinTech” report, and the Office of the Comptroller of Currency’s (OCC) release of a new FinTech Charter – are positive steps that will encourage ETA members’ continued development and implementation of fintech-driven solutions which will broaden access, affordability and security.

The Treasury Department’s “FinTech” report, prepared in response to Executive Order, “Core Principles for Regulating the United States Financial System”, examined core policies that affect the development and implementation of forward-thinking fintech products.

On behalf of its members, ETA met with Treasury officials to advocate for our priority issues, including many of the final recommendations:

• The establishment of Federal and State Regulatory Sandboxes, which will encourage new entrants to quickly develop, implement and bring to scale products and services which will improve the form and function of electronic payments.
• Establishing a uniform national data breach notification law, which will bring clarity for consumers and mitigate cost and risk for payments technology companies by establishing a clear, consistent, uniform standard for notification in the event a company is the victim of a data breach.
• Updating the Telephone Consumer Protection Act (TCPA) to bring it into the 21^st century and boost its effectiveness through changes that make it clearer and carefully consider new innovations.
• A solution to the uncertainty created by Madden v. Midland, which disrupted over 200 years of banking practice, hampering next-generation FinTech products and creating potentially damaging effects across the lending market.

“ETA applauds the Treasury report for promoting a positive economic environment in which ETA members can continue to develop and deploy FinTech solutions that provide consumers and businesses with innovative products and services,” said ETA CEO Jason Oxman.

And with new financial services technology being developed by ETA members across the world, OCC’s “FinTech Charter” represents an important step in encouraging innovation in the payments technology ecosystem.

“ETA applauds the OCC for its leadership in creating the Special Purpose FinTech Charter which will create a consistent and uniform regulatory framework for FinTech companies to quickly deliver their financial products and services to all Americans,” Oxman said. “The OCC Charter recognizes the value FinTechs offer to increase participation in and as access to financial services for consumers and small businesses, as well as the benefits to the overall economy.”

As the payments industry’s top advocate, ETA and its members will continue to contribute to the discussion on strengthening the regulatory environment and encouraging innovation. These two events are very positive steps towards a positive policy environment that supports ingenuity.