NACS Among Founding Members of New Payment Security Coalition
WASHINGTON, D.C. — Leaders in the retail and payments industries are teaming to form the Secure Payments Partnership (SPP), which will promote security across the payments system.
SPP is the first time these interests, which represent diverse parts of the payments system, have joined forces to address the continuing fight against payment fraud and make improvements to the U.S. card payment system.
NACS, the Association for Convenience & Fuel Retailing, is a founding member of SPP alongside the Food Marketing Institute, National Retail Federation, National Grocers Association, First Data's STAR Network, and SHAZAM.
SPP was formed to anticipate new and better technologies for making payments that are secure and fast. Currently, the United States lags behind the rest of the world in card payment security due to the two largest card networks controlling and setting payment security standards without the expertise of others, including competing card networks, merchants, consumers and financial institutions, according to the announcement.
Members of SPP believe all involved parties must work together to achieve successful payment security, increase transparency and limit fraud.
"As a founding member of the new Secure Payments Partnership, we are optimistic about how this unique collaboration of debit networks, payments processors and retailers can work together to strengthen the security of the U.S. payments system," said NACS Director of Government Relations Anna Ready. "NACS believes that by working together, we can address the structural problems in the current system and ensure everyone with a stake in payments has a voice in shaping the standards that impact each of us."
SPP will focus on meeting consumer expectations for security, convenience and flexibility in payment options, especially as new technologies evolve and emerge.
"The payments system has to keep pace with rapidly evolving technology and the needs of consumers and commerce," said Stephanie Martz, senior vice president and general counsel for the National Retail Federation. "The U.S. payments infrastructure should be the strongest, most innovative and most secure in the world, but we won't get there unless we change the way we make security decisions."
Recent new technologies that increase payment security include mobile and wearable payments, biometrics, use of artificial intelligence, geolocation, IP verification, blockchain, and ultrasonic sound waves. SPP plans to use these technologies to benefit all users.
"As innovation and technology continue to evolve and offer new ways to authenticate, we are committed to working in concert with our partners to address shortcomings in the payments system," said Dan Kramer, senior vice president of government and community affairs at SHAZAM. "We look forward to working across the industry and with policymakers in Washington to implement real solutions."
Priority areas will include strong user authentication, open standard setting and adoption, payment security innovation, and network routing competition.