U.S. Faster Payments Council Releases Report on the Role of Directory Services in Instant Payments

The U.S. Faster Payments Council (FPC), a membership organization devoted to advancing safe, easy-to-use faster payments in the United States, today published a new report, How a Directory Service Accelerates Instant Payments, produced by the FPC Directory Models Work Group. The report provides a detailed examination of how directory services can enhance the efficiency, security, and reach of instant payments.

As instant payments adoption continues to grow, financial institutions, fintechs, and payment service providers face challenges in managing account information, ensuring interoperability, and mitigating fraud risks. Directory services play a key role in addressing these challenges by enabling seamless routing of payments and protecting sensitive payment credentials.

“Directory services can significantly improve the speed and security of instant payments by enabling interoperability between networks,” said Peter Tapling, Managing Director of PTap Advisory, LLC and FPC Directory Models Work Group Chair. “By securely connecting payers and payees, directories reduce friction and drive broader adoption. This report explores key considerations for organizations leveraging directory services and their potential impact on the future of faster payments.”

The report looks at various directory models, highlighting their benefits and real-world use cases. It also examines implementation considerations for organizations integrating directory services into their instant payments strategy.

“As the paper points out, more than half of consumers reported paying a bill late in the past year due to reasons like forgetting or insufficient funds,” said Lou Grilli, Manager, Innovation at Velera and Directory Models Work Group Vice Chair. “Directory services can simplify bill payments by allowing businesses to share an alias—such as a mobile number or email—rather than sensitive bank account details. This approach enhances security and streamlines the payment experience for both businesses and consumers.”

Beyond bill payments, the report illustrates how directory services can support various faster payments use cases, from peer-to-peer transactions to business-to-business payments. As financial institutions and service providers continue to expand their instant payments offerings, understanding the role of directory services will be critical to maximizing their effectiveness.

“The FPC is dedicated to advancing a more efficient and secure faster payments system,” said Reed Luhtanen, FPC Executive Director and CEO. “This report underscores how directory services are key to unlocking the full potential of instant payments, making transactions safer and more accessible for all users. By providing a clearer understanding of directory models, the report helps industry stakeholders navigate this important aspect of the payments landscape.”