• Faster Payments: Does The Fed Have A Hidden Agenda? --

    “Connect the dots” is used as a metaphor to describe how a series of discrete events can explain a “big picture” – often high-impact – action or outcome. Steve Jobs, in his famous 2005 Stanford commencement address, said connecting the dots was only possible with hindsight, by looking in the rearview window at the series of things that had happened over the course of one’s life to explain the actions of the here and now. So let’s connect some dots. Take two announcements from just last week, related to the evolution of faster payments in the U.S. First, there was the Fed’s decision to slow faster payments progress via Same Day ACHbecause it wasn’t ready to approve another processing window during the day. Then came PayPal’s debut of Instant Transfer to Bank. This new feature, available to PayPal customers in good standing, leverages the company’s partnership with Chase, and Chase’s connection to The Clearing House’s RTP network, to move money instantly into the bank accounts of consumers and SMBs.
  • Could New Payments Council Push Fed to Move Faster?— Payments Source

    The new U.S. Faster Payments Council states a clear mission — to promote faster payments in the U.S. But this new entity could butt heads with the Federal Reserve if it thinks the Fed isn't moving fast enough. The new council, formed through recommendations from a Fed panel, has enough of the Fed's development plans and guidelines in its bloodstream to keep technology moving forward — at least for now. Still, it is certain that most stakeholders would want to avoid a slow-down of any sort of faster payments development, such as the one Nacha was dealt this week by the Fed in delaying a time frame for adding a faster level of the Same-Day ACH service. Subscription Required.
  • PayPal enables Instant Transfer to Banks for Faster Cash Access — Retail Dive

    PayPal is rolling out a capability that allows PayPal users to instantly transfer money sent to them via PayPal into their bank accounts, a service enabled through the company's partnership with JPMorgan Chase, according to a PayPal blog post. "Instant Transfer to bank," which uses The Clearing House's Real Time Payments network, already is available to U.S. consumers, and will be accessible to U.S. businesses in the coming weeks, with an eventual international rollout also planned, the blog post stated.
  • Making P2P Payments Fraud-Free —

    In today’s digital payments ecosystem, businesses, banks and consumers alike want access to their money as fast as possible. While person-to-person (P2P) payment solutions and real-time payment platforms are making the quick exchange of funds possible, fraudsters also see an opening to exploit these systems’ vulnerabilities. While the faster speed of payments is clearly appealing for users, there is now less time available to catch fraudsters as they attempt to steal funds.
  • Visa Direct Is The Engine Behind Zelle and Venmo — Forbes

    Behind popular real-time payment apps like Square, Venmo and Zelle is Visa Direct. “It’s a reversal of the traditional Visa system we think of it as purchase where you can pull money from your account, said Cecilia Frew, SVP Global Commercialization of Visa Direct. “This uses the same infrastructure, and the same risk tools and the same guidelines and we push the money to an account.  We can push money into a bank account using debit card rails." In addition to P2P payments, Visa Direct powers B2C, payouts to Uber drivers. Drivers can get paid in real-time for a 50 cents fee to Uber or wait for ACH at no charge. Over 50 percent of Uber and Lyft payments on Visa Direct are real-time; drivers are willing to pay a small charge to get they money right away, said Frew.
  • SWIFT Signals Further Openness To Blockchain? —

    The movement to bring blockchain to cross-border payments proceeds apace. Might SWIFT be giving a nod, at least partially, toward the use of distributed ledger technology (DLT)? As noted by OracleTimes, it seems the messaging network that ties banks and other financial firms together may indeed be open to DLT — if not directly, then deployed by some of its network. In an interview with CNBC, SWIFT Asia-Pacific Managing Director Lisa O’Connor said that some of its members are indeed using blockchain. One caveat? SWIFT is not planning to use blockchain directly in efforts to settle transactions done between banks.
  • Convergence of Real-Time Payments and Open Banking Helps Banks to Grow Revenue and Attract Customers

    Banks, processors and merchant acquirers must adopt holistic real-time and Open Banking strategies in order to monetize real-time payments, according to Get More from Real-Time Payments, a new white paper published by ACI Worldwide (NASDAQ: ACIW), a leading global provider of real-time  electronic payment and banking solutions, and payments consultancy Lipis Advisors. The study sets out recommendations for banks, processors and merchant acquirers and outlines services that allow all participants in the payments ecosystem to create new revenues, increase margins, and shorten the time to ROI.
  • J.P. Morgan Delivers Faster Payments to PayPal — J.P. Morgan

    J.P. Morgan is delivering Real-Time Payments (RTP) on a large scale in the marketplace. In 2017, J.P. Morgan was one of the early adopter banks to go live with Real-Time Payments in the U.S. on The Clearing House’s RTP® network. Last year, the team refined the offering through client pilots, to design curated solutions. PayPal recently went live with J.P. Morgan’s RTP offering, enabling their users to have immediate access to their money. After initiating a transfer on the RTP network from a PayPal account to their account (s) with a U.S. bank that is a part of the RTP network, a PayPal user will be able to access their funds within seconds.
  • SWIFT Managing Director on XRP — AMB Crypto

    Lisa O’Connor, Managing Director, Asia Pacific at SWIFT, spoke about whether the payments network would be using blockchain technology for providing payment solutions, in an interview with Ran NeuNer for CNBC Crypto Trader. She also discussed whether XRP could disrupt their business. The managing director was asked if SWIFT would implement blockchain solutions for bank-to-bank for foreign exchange transfers. To this, she said that “there is work” going on from the market infrastructure perspective and that the company’s stakeholders are looking at the possibility.
  • How Blockchain Is Transforming Cross-Border Payments — Forbes

    Blockchain is still a relatively new technology, but it is poised to disrupt the way companies and individuals process financial transactions on a global scale. Though it’s increasingly common for businesses to source goods and services internationally, the cross-border payment system hasn’t changed in decades. As the founder of a fintech company that deals with cross-border payments, blockchain has been an exciting development that we believe will become integral to businesses like ours.
  • Fed Delay Causes NACHA To Postpone a Third Processing Window for ACH Transactions for Six Month

    Automated clearing house governing body NACHA reported Tuesday that a third daily processing window for ACH transactions will be delayed by six months.The window, a component of NACHA’s years-long, multipronged effort to facilitate same-day clearing and settlement of ACH transactions, is now set to go live March 19, 2021, instead of the originally scheduled Sept. 18, 2020. The reason for the delay lies with the Federal Reserve, operator of one of the nation’s two ACH switches; bank-owned The Clearing House Payments Co. LLC  operates the other. The original live date depended on NACHA receiving okays from the Fed’s Board of Governors by June 30 of this year.
  • PayPal Launches Instant Transfer To Bank —

    Money moves only as fast as payments infrastructure will allow. To that end, there’s a bottleneck.  The gig economy is gaining steam, as roughly a third (more than 35 percent) of U.S. workers are participating in part-time or project-based employment, and increasingly they want to get paid when the work is done. Roughly 85 percent of the several thousand gig workers we surveyed said they would work more often if they could be paid faster. And as we found in the Gig Economy Index, a joint effort between PYMNTS and Hyperwallet, PayPal remains the most popular payment method for gig workers.
  • Jack Henry & Associates Reaches Milestone with Faster Payments Hub — Cision

    Jack Henry & Associates, Inc. (NASDAQ: JKHY) is a leading provider of technology solutions and payment processing services primarily for the financial services industry. The organization today announced that it is in active onboarding with the Zelle Network® to launch JHA PayCenter™, a proprietary payments hub that provides financial institutions with a single integration point to faster payment networks, including Zelle® and the RTP® network from The Clearing House.
  • ACH Network Marks a Daily Volume Record of 100 Million Payments — Cision

    The ACH Network set a record in February as volume exceeded 100 million ACH payments per banking day—an increase of 7.2 percent over February 2018. In each year there were 19 banking days in the month. Total Network volume last month exceeded 1.9 billion payments. “February’s record-setting performance is further proof of the vibrancy of the ACH Network and that it is a vital part of America’s economic engine,” said NACHA Chief Operating Officer Jane Larimer. “The nation’s consumers and businesses are clearly expressing their preference for electronic payments and the ACH Network will continue evolving to provide the services they need.”
  • Real-Time Payments Market Is Expected to Witness Healthy Growth from 2019 to 2024 — Digital Journal

    North America dominates the real-time payments market due to an increasing adoption of real-time payment solutions by a wide range of industry verticals...Real-Time Payments Market has penetrated different applications including BFSI, IT & Telecom, retail & e-commerce, government, healthcare, travel, and energy. The retail and e-commerce applications dominate the real-time payments market as it displays the maximum demand for payment services that offer convenience, speed, safety, ubiquity, and value for money.
  • PayPal Extends Faster-Funds Availability With Instant Transfers to Users’ Bank Accounts

    As money movement gets faster, consumer expectations are increasingly pushing payments providers to make funds available sooner. PayPal Holdings Inc. on Tuesday bowed to that reality with the latest in a series of faster-payment services. The new service, called Instant Transfer to bank, relies on connections to real-time payments pioneer The Clearing House Payments Co. LLC to get consumers’ funds into their bank accounts “in minutes,” PayPal says, compared to the standard wait time of one business day. The service carries a 1% fee, with a $10 limit.
  • MasterCard and Visa Look Set to Further Disrupt the P2P Payments Landscape — Barron's

    Mastercard (ticker: MA) and Visa (V) are working to extend their cross-border money transfer capabilities into peer-to-peer transfers, KBW analyst Sanjay Sakhrani said in a note to clients Monday...The back story. Mastercard said on Friday that it was withdrawing its offer to acquire Earthport Plc, a U.K. payments company that was the subject of a bidding war between Mastercard and Visa. Mastercard said it was dropping out because a low number of Earthport shareholders had accepted its offer.
  • Visa and PayActiv Collaborate for Real-Time Access to Wages — Nasdaq

    Visa Inc. V along with PayActiv recently announced an agreement that allows real-time access to earned salaries doled out by PayActiv. With the rise in demand for a quick access to earned funds and evolving customer expectations, this has now advanced to traditional batch payroll. Now PayActiv partner businesses can offer real-time deposit facilities of earned funds by using Visa Direct's real-time push payments platform. Gig economy workers, who expect fast payment are gaining from this transaction.
  • The Battle for Real-Time Payments Dominance in the U.S. —

    Since Fed catalysed the private sector to deliver real-time payment capabilities, there has been advocacy for the central bank backed, real-time payments (RTP) scheme. Many feel the lack of a ubiquitous RTP infrastructure has become a road block to innovation in financial technology and even created a competitive disadvantage for the U.S. economy. But could this be about to change? In October 2018, the Federal Reserve (Fed) re-ignited the issue by releasing a request for comment around its plans for a unified RTP system. Challenger and community banks, tech giants, fintechs and major U.S. retailers all strongly and publicly backed the proposal.
  • U.S. Real Time Payments: a View from Across the Pond — Payments Journal

    An article in Finextra today nicely summarizes the current state of real-time payments in the U.S.  In case your attention has been focused elsewhere, here are the quick highlights: The Clearing House continues to build out its RTP platform with banks (large banks, mostly) integrating real-time services into their payment offerings directly or through technology providers; Early Warning continues to grow its Zelle person-to-person (P2P) solution at break-neck speed and is now focused on developing business-to-consumer (B2C) disbursement solutions; Mastercard’s Send and Visa’s Direct near real-time products are growing particularly in B2C channels, with the advantage of being able to reach (theoretically) anyone with a network branded card; Same Day ACH, although not real time, does offer settlement within hours and is seeing strong growth as well...