Payment Rail Infrastructure Digs Deep Into Real-Time Transacting

While emerging payment services are embracing modern infrastructure to move money more quickly and with richer data, some players in the payments space are taking advantage of infrastructure that already exists to strengthen capabilities. This week’s look at the latest in payment rail innovation explores new investments from financial institutions and service providers to drive real-time payments.

PNC Bank Joins CHIPS

PNC Bank has just become the latest financial institution to loop into The Clearing House’s CHIPS network to facilitate the clearing of high-value cross-border payments, The Clearing House recently announced. Global high-value payments will be sent via the CHIPS network, which the bank said operates on infrastructure that can help to clear more transactions earlier in the day. It’s a wire transfer system that PNC Treasury Management Executive Vice President and Head of Product and Operations Chris Ward said helps to enhance the bank’s own payment solutions, with CHIPS able to automatically match and net payments for greater settlement efficiency.

The Clearing House Loops Into Zelle

The Clearing House is now enabling its real-time payments rail, the RTP network, to clear and settle transactions made via Zelle. The integration supports real-time bank transfers and is opening the door to new use cases for instant payments. A press release noted Bank of America and PNC Bank are the first institutions to send Zelle payments via RTP. Its support for ISO 20022 payments messaging standards means transactions not only move and settle more quickly, but financial institutions can also streamline back-office workflows.

VTB Links Airlines To Blockchain Fuel Payments

VTB Bank is investing in blockchain to facilitate B2B payments in a niche corner of the market. In a press release issued earlier this week, VTB said it has reached a deal with Gazprom Neft to use the company’s Smart Fuel blockchain platform, enabling airlines to pay for fuel suppliers via blockchain. The financial institution’s announcement said the platform supports real-time transactions 24/7, negating the need for advanced payments or bank guarantees. An aircraft pilot initiates a transaction on their tablet, with funds on hold until fueling is complete, whereby funds are then moved into the Gazpromneft-Aero bank account. “In the future, it will enable airlines to save money on advance payments,” said Senior Vice President and Advisor to the First Deputy President and Chairman of VTB Bank Management Board Viktoria Vanurina, in a statement.

Payments Canada Taps Interac For Real-Time Rail

With Canada edging closer toward a real-time payments ecosystem, Payments Canada, the entity that operates the nation’s payments systems, has chosen exchange solution provider Interac Corp. to bolster the incoming Real-Time Rail (RTR). The new real-time payment rail will integrate Interac’s technology that. facilitates the sending and receiving of RTR transaction messages, with Interac already integrated across nearly 300 financial institutions in Canada. According to a press release, the exchange solution will interface with Mastercard’s Vocalink, which provides clearing and settlement functionality for the payment service. “The Real-Time Rail will be the foundation for faster, data-rich payments and act as a platform for innovation,” said Payments Canada President and CEO Tracey Black.

Fidor, SIA Bring Instant Payments To Germany

Fidor Solutions, a subsidiary of Sopra Banking Software, recently revealed a collaboration with CDP Equity’s SIA to launch an instant payments solution in Germany and, eventually, across Europe. Together, the firms are developing an “Instant SEPA Payment Solution” that allows the sending and receipt of payments in less than 10 seconds. SIA facilitates direct integration into the EBA Clearing’s real-time settlement system RT1, as well as the TIPS network. According to the announcement, the instant payment solution is helping to advance the acceleration and digitization fo Europe’s payments ecosystem overall.