NEVADA VIEWS: Silver State can lead way on modern payment systems

In a world where payments move at the speed of light, the United States remains stubbornly stuck in slow motion. Consumers and small businesses across our country, including in Nevada, pay the price for an outdated financial system that lags behind the rest of the developed world. But Nevada has a chance to address that gap — and position itself at the forefront of the next wave of financial innovation — through Assembly Bill 500, the Nevada Payments Bank Act.

Every time a Nevada business accepts a credit or debit card, a chunk of earnings is siphoned off by entrenched financial intermediaries. These costs show up in the prices paid by consumers — and they’re growing. In fact, the payments system often retains more profit on a cart of groceries than the store that sells it. That’s not innovation; it’s inefficiency at scale. These hidden costs are especially damaging to low-income families, where every dollar counts, and to small businesses that already operate on razor-thin margins.

The Nevada Payments Bank Act introduces a new kind of financial institution: a payments-focused bank that exists solely to move money — no loans, no branches, no unnecessary friction. These banks will be fast, secure and tightly regulated, with all the consumer protections of traditional institutions, but none of the legacy baggage. This isn’t about disrupting banks — it’s about expanding the system to allow new entrants that are purpose-built for today’s digital economy.

We’ve seen proven models elsewhere that show what’s possible. In Europe, non-bank financial firms — such as digital wallets, remittance services, and retailers — can gain direct access to payment networks. That’s driven competition and lowered fees. In the United States, however, these companies must still rely on traditional banks to access payment systems — a dependency that drives up costs, slows innovation and introduces unnecessary operational hurdles. Nevada can break that mold.

Here’s why it matters for our state:

First, it’s an economic development opportunity. By creating a charter tailored to the payments industry, Nevada will attract companies from across the country and around the world. These are not hypothetical startups — we’re talking about global retailers, online marketplaces and cutting-edge fintechs looking for a regulatory home that understands their business and fosters growth. They’ll bring high-paying jobs in compliance, engineering and operations — all rooted in the Silver State. This new financial services hub could drive an ecosystem of innovation similar to what South Dakota did for card issuing or what Utah achieved with industrial banks.

Second, it helps our small businesses. Local shops and entrepreneurs are being squeezed by processing fees. By giving businesses access to more choices in the market, the legislation boosts Main Street competitiveness and improves cash flow — something every small-business owner can appreciate. Payment banks will introduce more direct relationships with networks such as Visa and Mastercard, helping merchants negotiate better terms and pass savings on to customers.

Third, it empowers consumers. When the cost of moving money goes down, everyone benefits. By streamlining how money moves and eliminating outdated barriers, the act helps lower costs and expands access to faster, more reliable services across Nevada. Consumers may not see these savings itemized on a receipt, but they’ll feel it over time — whether through lower prices, better digital services or expanded access to innovative tools for managing money.

Fourth, it creates a new revenue stream for Nevada that will support essential public services — from education and infrastructure to public safety — without raising taxes on hardworking Nevadans. This fee is a fraction of what is charged in today’s credit card process and is designed to be absorbed within a more efficient payments framework. By operating with lower overhead and fewer intermediaries, payment banks can maintain competitive pricing while still contributing to the state’s financial strength — ensuring Nevadans benefit both at the register and in their communities.

Nevada is no stranger to innovation. We’ve consistently demonstrated how smart, forward-looking regulation can unlock new industries and drive growth — from gaming and cannabis to emerging technologies.

Some might say this is unnecessary or even risky. But the Nevada Payments Bank Act strikes the right balance — pairing forward-looking innovation with the oversight, safeguards and consumer protections of traditional banking. In Nevada, we understand that the greater risk lies in doing nothing — clinging to outdated systems while the rest of the world moves forward. The smart path is to lead with purpose, embrace responsible innovation and build a stronger, more inclusive financial future for all Nevadans.

The Nevada Payments Bank Act is about creating a more modern, efficient financial infrastructure that works for everyone. It’s about giving our state the tools to lead. When we lead, others follow — and Nevada’s leadership in payments could serve as a blueprint for national reform.

Let’s take that step. Let’s make Nevada the national leader in payments innovation.

Steve Yeager, a Las Vegas Democrat, is speaker of the Nevada Assembly and the sponsor of AB500.