As real-time payments assert themselves as a payment item, bank processors are enthusiastically signing new customers to provide the prompt payment service. Financial institution processor Jack Henry & Associates Inc., in particular, has enrolled merchants at a rapid pace in The Clearing House Payment Co. LLC’s real-time payments network. According to Jack Henry, of the 177 banks and credit unions using RTP, 118, or 66.6%, are customers of Jack Henry.
In a Tuesday release, Monett, Mo.-based Jacques Henri says it has 87 other customers in the onboarding process through its faster payment hub, JHA PayCenter. The TCH RTP service debuted in 2017 and Jack Henry’s first customer joined the service in December 2019. TCH says its RTP network reaches 60% of demand deposit accounts in the United States. Any financial institution, as long as it is a deposit institution insured by the federal government, can join the network.
Other bank processors also offer access to the RTP network. FIS inc. earlier this year, it launched RealNet, a cloud-based software-as-a-service platform for account-to-account transactions, which integrates RTP in addition to same-day ACH processing. And Zelle, the peer-to-peer payment network of Early Warning Services LLC, said payments on its network can be cleared and settled over the RTP network. From a March report of ACI World Inc., the United States ranks ninth, with 1.2 billion transactions, among countries offering real-time payments. This volume is likely to increase rapidly as more banks and credit unions join real-time payment networks and the Federal Reserve launches its FedNow service scheduled for 2023.
Jack Henry claims that his customers transferred $ 325 million over the RTP network, which equates to approximately 700,000 transactions.
âWe continue to see the growing demand for this service as new use cases emerge, and consumers and businesses alike expect to transfer money exactly when they need it,â Rusiru said. Gunasena, managing director of JHA PayCenter, in a statement. âWe expect real-time payments to continue to drive strong adoption and growth as more convenience-oriented businesses and consumers seek to improve their cash flow with faster access to their money. “