As banks continue on their paths to implementing The Clearing House’s Real-Time Payments (RTP) rail, financial services firm FIS wants to ease friction of the adoption process.
The company announced news on Tuesday (June 26) that it has developed a new tool for financial institutions to automate RTP testing before the service goes live for customers. The software solution also supports a more efficient certification process.
Simulation testing is a requirement for financial institutions and payment companies to connect to RTP, FIS explained.
“RTP offers real-time transaction clearing and settlement for all U.S. banks and credit unions,” said The Clearing House Executive Vice President, Product Development and Strategy, Russ Waterhouse in a statement. “Automating the testing and certification process will make it easier and faster for these institutions to get on board.”
FIS and The Clearing House have already been working together to promote the adoption of real-time payment clearing and settlement for the U.S. financial services market; much of that partnership includes FIS’ services to financial institutions addressing friction associated with adoption of the RTP system.
“U.S. financial institutions are eager to bring real-time payments to their customers as quickly as possible,” said Marianne Brown, FIS co-chief operating officer, in another statement. “By simplifying and expediting the testing and certification process, financial institutions will be able to realize the benefits of real-time payments more quickly.”
The Clearing House says Real-Time Payments will reach ubiquity by 2020. While industry players expect the payment rail to gain traction with consumers, Real-Time Payments for corporates have a less certain future.
Recent research from Aite Group found a lack of consensus among financial institutions (FIs) with regards to how high transaction volume Real-Time Payments for corporate transactions will be 36 months following implementation: About a quarter of surveyed large FIs predict that volume to be less than 5,000 transactions per month, while an additional quarter said that volume could surpass 100,000 transactions per month.