Dive Brief:
- Wells Fargo has enabled its corporate clients to send payments in real time over The Clearing House's RTP network, the bank announced Tuesday in a press release.
- The move furthers Wells Fargo's adoption of immediate transactions. The bank allowed retail and wholesale customers to receive payments over the network, beginning last year.
- The Clearing House wants banks nationwide to adopt the RTP network by next year. More than half of U.S. accounts are equipped to use the network to receive real-time payments, The Clearing House said.
Dive Insight:
The U.S. has been slow to adopt real-time payments in comparison to countries such as the U.K., India and Mexico. Fifty-four countries are operating real-time payment systems, according to a September report from financial services company FIS, an increase from 40 last year.
The Clearing House, with backing from 24 banks including Wells Fargo, launched the RTP network in 2017 and is racing to keep pace with global innovation. One factor that may hinder the U.S.'s effort for a universal real-time payment system is the Federal Reserve's decision in August to create its own network by 2024. However, Fed Chairman Jerome Powell told members of Congress last week he thinks that timeline can be shortened by a year or two.
Clients of the nation's fourth-largest bank can send real-time payments using an application programming interface available through the Wells Fargo Gateway, an open banking channel.
"Our customers want the ability to make immediate payments and receive timely confirmations to run their businesses more efficiently," said Danny Peltz, Wells Fargo's head of treasury, merchant and payment solutions. "The ability to send transactions on the RTP network gives our customers yet another option for moving money when and how they want."
