Business Wire has reported that Ripple partner FIS has inked a deal with The Clearing House to bring a system of real-time payments to small and medium-sized U.S. banks and financial institutions.
Small and mid-sized U.S. banks to implement real-time payments
Banks and their clients constantly ask for payment solutions that are faster and more convenient than the ones available at the moment, so FIS and The Clearing House have joined forces to give them what they have been asking for.
The real-time payments service managed by FIS is now combined with the payment system run by The Clearing House in the U.S. (the RTP network) and offers a seamless connection for financial institutions.
The RTP network ensures fast payments for U.S. banks and their clients, and now small and medium-sized banks can join them and make real-time payment transfers via The Clearing House's network.
That will prevent these institutions from having to hire extra staff or make large investments in equipment or infrastructure.
First customers of the new joint payments network
Two banks—First Bank and Nano Banc—have already joined the first line of customers and have already been able to connect to the RTP network. First Bank is among the largest private banks in the U.S.
The bank's Assistant Vice President, Ajay Kothuri, stated that connecting to the RTP network via FIS will make things payments less complex and cheaper. Besides, he mentioned that the volume of real-time payments has been growing recently.
A large number of new clients are expected to come from the FIS user base.