Third-party organizations provide real-time ups


The Clearing House - Real-Time Payments - June/July 2022 - An overview of the RTP® network ecosystem and leading organizations helping FIs support real-time payments

The number of faster payment options continues to proliferate – particularly for consumer use cases – but The Clearing House’s RTP® network is the only such option in the US currently offering true in-time payments. real, where transactions are settled with two-way courier at any hour of any day. All but 24 of the 251 financial institutions (FIs) participating in the RTP network are enabled by a third party, be it a technology provider, funding agent or a third party providing a combination of the two.The Clearing House - Real-Time Payments - June/July 2022 - An overview of the RTP® network ecosystem and leading organizations helping FIs support real-time payments

In this edition of Real-Time Payment Tracking®PYMNTS takes a closer look at the ecosystem of third parties that help support and facilitate the RTP network and offers insights for FIs and potential participating companies to consider when looking to enable true real-time payments.

Around the space of real-time payments

In a survey of professionals at US banks and credit unions with assets between $2 billion and $25 billion, 27% of respondents said their organizations were already connected to The Clearing House’s RTP network. This share is almost double the percentage who gave the same answer in 2021. Moreover, this growth looks set to continue, with 37% of those not connected to the RTP network saying they are engaging to join in the coming year, which means that more than half of all FIs in this range are expected to be connected to the network in 2023.

The Clearing House - Real-Time Payments - June/July 2022 - An overview of the RTP® network ecosystem and leading organizations helping FIs support real-time paymentsAs consumers and businesses seek faster ways to pay, security and privacy are also high priorities. With the addition of tokenization of deposit and checking account information to the RTP network and electronic payments network, participants can ensure that a sender’s or recipient’s account information is only shared with no other party. Through Secure Token Exchange, a token is issued to work in place of a customer’s bank account and routing information.

For more on these and other stories, check out Tracker’s News & Trends section.

Put real-time payments at your fingertips

FinTechs are looking to connect FIs and their customers with faster payment options as demand grows. These third-party organizations enable community banks, credit unions, and other small to medium-sized financial institutions to offer competitive payment options by doing the heavy lifting in terms of technology, payment infrastructure, and even liquidity management. . Payrailz, which aims to help customers access a variety of payment rails, including the RTP network, and Jack Henry & Associates (JHA), which operates an internal payment system to help FIs access the network, are two of these FinTechs.

To learn more about the crucial role of third-party service providers and funding agents in delivering real-time payments for small and medium-sized FIs, check out this month’s article.The Clearing House - Real-Time Payments - June/July 2022 - An overview of the RTP® network ecosystem and leading organizations helping FIs support real-time payments

PYMNTS Intelligence: The Role of Third-Party Organizations in Delivering Real-Time Payments

The most recent information from The Clearing House indicates that 251 FIs can send and receive payments in real time via the RTP network, reaching 61% of US direct deposit accounts (DDAs). At the same time, only 24 of these FIs are directly integrated into the RTP network. Others participate through a third party, such as a Third Party Service Provider (TPSP) or a Credit Union Service Organization (CUSO). Many other FIs can receive real-time payments through these third parties, even if they do not participate in the network.

This month’s PYMNTS Intelligence takes a closer look at the RTP network ecosystem and the third-party organizations that help FIs deliver true real-time payments to their customers.

About Tracking

The Real-Time Payment Tracking®a PYMNTS and The clearing house collaboration, examines the latest trends and developments shaping the real-time payments space and the role of third-party service providers in making real-time payments possible for more FIs.

Previous Colby Library News | Libraries
Next Experiment with New Readings for the Library Summer Challenge | New