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Payments Systems Research and Engagement

Engaging in payments systems research to promote innovative services provided by payments systems operators and financial institutions to consumers and businesses.


The Federal Reserve Bank of Cleveland payments experts conduct payments systems research and engagement independently and in partnership with Federal Reserve System colleagues. We aim to harness local payments expertise derived from payments work conducted at the Cleveland Fed and across the Fourth Federal Reserve District to advance payments systems knowledge.

We seek to enhance the understanding of the public, System colleagues, and financial services organizations that develop and use leading payments solutions for consumers and businesses. This advances the Federal Reserve System policy goal of promoting a safe, efficient, inclusive, and innovative payments system.

Payments systems impact our community and the economy

The Cleveland Fed is a thought leader in developing modern payments solutions. Beyond their operational responsibilities, Cleveland Fed staff have conducted and contributed to recent research focused on a variety of topics, including privacy-enhancing technologies, core banking systems, and digital currencies.

Featured Cleveland Fed research on payments systems

Working Paper
Introducing a Framework for Measuring the Quantitative Benefits of Privacy-Enhancing Technologies
08.07.2024 | WP 24-16
This paper reviews privacy-enhancing technologies (PETs) and explores their benefits when used to make traditional payment processes more private. PETs can decrease privacy risk by reducing the amount of sensitive information accessible to payment-processing personnel and systems. This paper proposes a framework for quantifying the risk-reduction benefits of PETs. This method can be used to calculate the amount of privacy-risk exposure that may be created by a set of payment activities, estimate the amount by which PETs can decrease that exposure, and compare that quantified benefit against possible PET drawbacks. Assessing these drawbacks is outside the scope of this paper.

Collaborative research on payments systems

The following research and articles highlight additional payments systems content the Cleveland Fed has contributed to in partnership with System counterparts. This includes research on core banking service providers, blockchain networks, and digital currencies.

Payments System Research Briefing: Kansas City Fed (first of three papers)

Core Banking Systems and Options for Modernization: Federal Reserve Bank of Kansas City (kansascityfed.org)
By: Julian Alcazar, Sam Baird, Emma Cronenweth, Fumiko Hayashi, and Ken Isaacson
02.28.2024

Payments System Research Briefing: Kansas City Fed (second of three papers)

Market Structure of Core Banking Services Providers: Federal Reserve Bank of Kansas City (kansascityfed.org)
By: Julian Alcazar, Sam Baird, Emma Cronenweth, Fumiko Hayashi, and Ken Isaacson
03.27.2024

Payments System Research Briefing: Kansas City Fed (third of three papers)

The Role of Core Banking Services Providers in Facilitating Instant Payments: Federal Reserve Bank of Kansas City (kansascityfed.org)
By: Julian Alcazar, Sam Baird, Emma Cronenweth, Fumiko Hayashi, and Ken Isaacson
05.08.2024

FEDS Notes: Board of Governors

The Fed: Governance of Permissionless Blockchain Networks (federalreserve.gov)
By: Amber Seira, Jeffrey Allen, Cy Watsky, and Richard Alley
02.09.2024

FEDS Notes: Board of Governors

The Fed: An Examination of First-Mover Advantage for a CBDC (federalreserve.gov)
By: Ken Isaacson, Jesse Leigh Maniff, and Paul Wong
11.25.2022

Pay-4th Payments Roundtable

The purpose of the roundtable is to deepen the Cleveland Fed’s awareness and understanding of payments stakeholder perspectives. Members of the payments community from within the Fourth District, including depository institutions, service providers, and corporations, are periodically invited to discuss payments systems activities taking place in the District. Roundtable participants may vary from one meeting to the next based on industry developments and topics selected for discussion.