Real-time payments are coming to the U.S., although it may take a while to reach into remote spots across the country that are served by small community banks or credit unions.
The Clearing House (TCH) will be able to reach everyone, said Steve Ledford, although it may take until 2020 to get to 100%. The banks of TCH are committed to bringing real-time payments live before the end of this year, primarily with business customers, and then ramping up quickly through 2018 to cover half the country with real-time service.
“The objective is to make sure we achieve ubiquity.” That requires that the banks on both ends of a payment are prepared to process it. If you are sending a payment, you want to make sure someone on the other end can get that payment. Otherwise, it could be like the early electronic bill payment that banks offered which ended up printing paper checks and sticking them into snail mail — not exactly end-to-end STP.
“TCH will implement a platform capable of solving the entire country, will work with everyone else,” Ledford added. “We think our approach teaming with FIS and folks like that is the most effective way to reach the entire population.”
Taking advantage of the reach TCH already has with partners and their core platform services is the fastest and most effective way to reach the whole country.
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