BNY Mellon and US Bank used the Real-Time Payments system to move USD 3.50 through two different accounts — for the same customer — at the two banks. RTP, which is owned by American banks and was developed by The Clearing House (TCH), has several other applications, including e-invoicing, bill pay, and consumer payments.
More than that, the first transaction carried data designed to make it easier for businesses of all sizes to reconcile their accounts more quickly and inexpensively.
TCH developed RTP with technology from Mastercard-owned Vocalink. It is expected to be used by banks holding more than half of all deposits by the end of 2018 and to be “ubiquitous” by 2020.
For consumer uses like peer-to-peer payments, real-time settlement “adds convenience for users,” Business Insider reported. “But for business-based payments, like bill pay, emergency payroll, and others, it could be massive — in 2016, 53% of merchants believed faster payments implementation would have a positive impact.”
The system could also help the US catch up with leading global payments players such as the UK, which has been offering real-time payments platforms for several years.
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