The Clearing House brings in FIS to boost small bank access to RTP network
Boosted by the 2nd Payment Services Directive (PSD2), real-time payments in Europe are a hotbed of fintech-driven innovation. In the US, with the Federal Reserve’s platform still a couple of years away, real-time payments are still the preserve of the private sector and have moved at a slower pace.
To speed things up, US-based payments software provider FIS has teamed up with The Clearing House to provide real-time payment processing (RTP) and settlement to small-to-medium-sized banks and credit unions along with their customers.
Earlier this year, The Clearing House, which operates the RTP network in the US, increased its transaction limit to $100,000 from its previous transaction limit of $25,000. The Clearing House is a US based payments network which is also the only-private sector ACH and wire operator.
Under this partnership, a financial solutions provider would assist other institutions to connect to the RTP network. According to the press release, this service is targeted towards core banking systems. Nano Banc and First Bank are amongst the first core banking clients to begin real-time payments through the new platform.