WASHINGTON, D.C. —Rep. Young Kim announced the introduction of bipartisan legislation aimed at modernizing the nation’s payments infrastructure, including giving fintechs access to the payments rails.
Kim, a Republican representing California’s 40th District, said she partnered with Rep. Sam Liccardo, a Democrat from California’s 16th District, to introduce the Payments Access and Consumer Efficiency (PACE) Act.
In a statement, Kim said current payment systems often require transactions initiated through apps to pass through multiple intermediaries, slowing processing times and increasing costs. The PACE Act, she said, would allow qualified payment providers to access federal payment systems directly, reducing delays and lowering fees for consumers and small businesses.
‘Shouldn’t Have to Wait Days’
“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paying rent, or waiting on a paycheck to clear, Americans are often stuck dealing with delays and increased fees due to outdated payment infrastructure,” Kim said in the release. “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.”
Kim said the legislation is designed to reduce reliance on intermediaries and improve the efficiency of money movement across the financial system.
Support for Fintech
Not surprisingly, Kim said the legislation has received support from several industry organizations, including the Financial Technology Association, Blockchain Association, The Digital Chamber and Crypto Council for Innovation.
Supporters also said the legislation would allow qualified nonbank providers, including digital asset firms, to access Federal Reserve payment systems under a structured regulatory framework.
According to Kim, the PACE Act would establish a pathway for certain payment companies to operate under a uniform federal regulatory structure with oversight from federal regulators, while maintaining strong consumer protections.
The Key Provisions
According to Kim, 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
