California Lawmakers Propose Bill to Open Fed Payment Rails to Nonbanks

California lawmakers Rep. Sam Liccardo and Rep. Young Kim have introduced the Payments Access and Consumer Efficiency Act, or PACE Act, which would allow nonbank payment companies to access Federal Reserve payment systems.

The bill aims to create a federal supervisory framework for nonbank payment service providers, administered by the Office of the Comptroller of the Currency.

Under the proposed legislation, qualifying nonbank firms would gain direct access to Fedwire settlement system, FedNow instant payments service, and the FedACH payment processing network.

The PACE Act seeks to reduce the burden of bank fees on American families by enabling broader access to innovative payment systems.