The Clearing House Kicks off Efforts for Real-Time Payments
The Clearing House has revealed its plans to undertake a multi-year effort to create a safe, real-time payment system in order to keep up with modern times’ increasingly digital and fast paced environment. The payment system will allow for customers and businesses to send and receive payments immediately, directly from their bank accounts through secure servers.
While The Clearing House is spearheading the project, they will require the support of other financial institutions and technology providers, both big and small. The Federal Reserve has also stressed the need for the banking industry to create a uniform, national payment service.
“The digital economy moves in real time and our customers expect us to keep pace,” said Richard Davis, Chairman, President, and CEO of U.S. Bank and Chairman of The Clearing House. “We will work with the industry to build a real-time payment infrastructure, which will enable consumers to pay and get paid securely and conveniently.”
Some of the core customer benefits The Clearing House plans to include are:
- Convenience – Consumers will be able to pay each other directly from their accounts using online / mobile banking
- Account Data Privacy and Ease of Use – Users will not need to input sensitive bank account information, keeping their accounts secure
- Cost Savings – Real-time payment services replace the need to transfer funds, cash checks, or pay bills last-minute – all expensive options.
- Certainty – Users will receive notifications of their payments immediately
- Safety – Financial institutions, who have existing relationships with their customers, will be responsible for authentication of payments
- Cash Management – The real-time effects of The Clearing House’s plans will benefit consumers and small businesses on low budgets
“Consumer safety and privacy are core competencies of the banking industry that will be brought to bear in the development of this system,” Jim Aramanda, President and CEO of The Clearing House added. “Real-time payments will incorporate strong safeguards to protect account information, building on The Clearing House initiative to develop and implement tokenization.”