The Clearing House (TCH) has launched RTP, its real-time payments system, the first new core payments infrastructure in the US in more than 40 years.
The new RTP system was designed and built through the collaborative effort of TCH’s 25 owner banks and meets the objectives of the Federal Reserve Faster Payments Task Force. RTP is open to all US depository institutions with a goal of reaching ubiquity by 2020.
The first real-time payments on the system were initiated between BNY Mellon and U.S. Bank yesterday evening. They will be very shortly followed by Citi, J.P. Morgan, PNC and SunTrust, who together represent the Industry’s earliest adopters of RTP.
“As an industry, RTP positions us like never before to meet the evolving needs of our customers and commercial clients,” says William S. Demchak, PNC’s chairman, president and chief executive officer and chairman of The Clearing House‘s Supervisory Board.
“At a time when our clients are asking for the ability to conduct their business with greater speed, efficiency and security, RTP will make everyday financial tasks such as paying bills, issuing invoices, making payroll or settling insurance claims faster, safer and more satisfying for businesses and consumers across the country.”
“RTP is one of the most important payment transformation efforts in our industry. It goes far beyond helping financial institutions address the legacy challenges of payment processing in the US (speed, transparency, cost) and improving the client experience. Bringing online a truly real time, two way, 24×7 payment and messaging system will create new scenarios and entire new markets in ways we have not even anticipated,” comments Ian Stewart, CEO of BNY Mellon Treasury Services.
RTP is open to all US depository institutions. Similar to Wires and ACH, RTP will become part of the core industry infrastructure with the potential to support many use cases and underpin financial institutions’ client-facing services. TCH is working with a wide array of industry stakeholders, including community banks, credit unions, and financial institution service providers, to drive RTP adoption.