BNY Mellon to test real-time payment service 21 September 2016New York Reporter: Drew Nicol
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BNY Mellon has upped the ante in the race to achieve efficient real time payments by becoming one of the first participants to incorporate the Real-Time Payment (RTP) system being developed by The Clearing House (TCH) into its clearing infrastructure.
According to BNY Mellon, it plans to use the RTP system to facilitate real-time payments on behalf of both corporate and bank clients, and to leverage the system's capabilities in support of other in-house payment innovations.
RTP will be available in the US in the first half of 2017.
"We see the availability of real-time clearing and settlement as one of the most significant advances in payment technology in more than 40 years," said Michael Bellacosa, managing director and head of global payments for BNY Mellon's Treasury Services business.
"Payment innovations have to pass three key tests — reliable and repeatable global standards; sufficient levels of ubiquity and network effects; and regulatory buy-in. Being designed to satisfy all three criteria, RTP system promises to add an important new dimension to our clients' payment experience."
Russ Waterhouse, executive vice president, product development and strategy for The Clearing House, added: "The participation of our member banks is critically important to the success of our real-time payments initiative."
"BNY Mellon's commitment to bring RTP system to market reflects the high level of leadership the company has demonstrated from the outset of the project, and their ability to provide real-time payment support as part of their outsourcing services for client banks represents an important network effects multiplier."
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