Financial services technology firm FIS has partnered with The Clearing House (TCH) in the US to create a real-time payments system.
A pilot will be launched in Q1 of 2017, which will test bill payments for clearing and settling in real time. FIS will run the pilot, using its own rails and the TCH-owned system to develop new services to offer its own clients.
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Anthony Jabbour, COO banking and payments at FIS, said his company was "honoured to play such a pivotal role".
"Our position further highlights FIS’ leadership and capabilities in advancing a modern payments system," Jabbour added.
FIS is one of 19 approved technology companies selected by the Federal Reserve’s Faster Payments Task Force to implement a real time system, and Peter Gordon, FIS’ senior vice president of payment strategy was selected to be on the task force’s steering committee.
FIS joins UK financial services technology provider VocaLink on the steering committee for the faster payments project to contribute to the development of a real time system in the US.
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By GlobalDataVocaLink CEO David Yates and TCH CEO Jim Aramanda signed a contract to work together in December 2015.
TCH is the only private sector ACH and wire operator in the US and processes roughly 50% of all commercial ACH and wire volume in the US.
FIS and VocaLink also happen to be the only two financial services technology firms to be certified as yet by the UK’s Faster Payments system to develop the infrastructure to accommodate the push for widened access to the system. Currently, ‘non-banks’ are forced to access indirectly, paying member banks (in some cases) very high fees to push payments through.
