The financial services technology provider Jack Henry & Associates is the latest company to collaborate with The Clearing House to speed processing, a move that will substantially increase the number of banks capable of executing faster payments.
The Clearing House is negotiating the deals as it builds a real-time payments system it will own and operate, in alignment with the Federal Reserve’s Faster Payments initiative announced in January 2015, an evolution that has progressed slowly.
The Clearing House said last month that ACI Worldwide was providing key technology elements, including technology, including connectivity and risk management, for its real-time payments system. FIS is providing integration services.
The partnership with Jack Henry, which includes 6,300 banks, specifically addresses the Fed's goal of making real-time payments ubiquitous, said Steve Ledford, senior vice president of product and strategy at The Clearing House, an operator of the automated clearing house network.
For Jack Henry, the deal means financial institutions of all sizes—even small community banks and credit unions—will have access to secure, real-time payments, said Greg Adelson, general manager of JHA Payment Solutions.
The Clearing House Payments Co. is owned by banks and handles nearly half of all U.S. commercial and wire-transfer payment volume, according to the organization, the organization said.