Remember the days when credit cards would take 5 to 7 days to transfer money? Now many businesses get their payments within 1-2 business days.
But the next hurdle, real-time payment transfers in the U.S. just got a leg up with this announcement. We would anticipate to see faster payment transfers by merchant solutions and digital wallets improve over the next year.
Here is the Press Release from Mastercard/Vocalink
Vocalink, a Mastercard company, supports The Clearing House (TCH) today in the launch of RTP®, its transformative real-time payment system in the U.S., which empowers consumers and businesses to send and receive immediate payments domestically.
Financial processes that used to take days can now be concluded in seconds. Two banks – U.S. Bank and BNY Mellon – have completed the first live transactions.
At its core, the technology behind The Clearing House’s RTP system is an evolution of Vocalink’s highly successful and reliable systems developed for the U.K., Singapore and Thailand.
These real-time solutions sit at the centre of the global payments infrastructure and have been designed to ‘run on their own rails’, working alongside and between conventional settlement systems.
The TCH system operates 24/7 to process credit transfers, requests for payment, requests for information, confirmation messages, returned and rejected payments and system and service related messages. It also integrates support for multiple transaction channels, including online and mobile.
“The U.S. can now claim a leading position in real-time payment solutions. Working together with The Clearing House, we have delivered a best-in-class, functionally rich system capable of meeting the demands of today’s U.S. economy while building a system robust enough and flexible enough for further innovation,” said Paul Stoddart, CEO, Vocalink, a Mastercard company.
“Now the U.S. is not only aligned with other markets, but is a trailblazer in the payments sector, providing consumers, businesses, banks and governments with the choice they demand.”
The revolutionary payment system supports interoperability across the global payments landscape. It will reach the largest number of financial institutions and accounts and allows for ease of integration with TCH’s third-party services, supporting anti-fraud, and compliance processes.
“The launch of our RTP system, which was developed using Vocalink’s technology, is a significant development for America’s banks, consumers and businesses. Not only will people be able to process payments in seconds, but the system offers a suite of payment-related communications,” said Jim Aramanda, CEO, The Clearing House.
“We will provide increased efficiency and solve problems for businesses large and small as they track and reconcile payments. This new capability provides an opportunity for banks and others to add value for their customers.”
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