Thursday, July 22nd, 2021
Supporters of Real-time payments are determined to make the avenue a staple in the US. Recently FIS Inc. publicized the rollout of RealNet, a cloud-based SaaS platform that powers customers, companies, and authorities to complete account-to-account transactions.
RealNet, which the payments company calls “a network of networks,” uses The Clearing House Payment Co’s real-time transaction network, plus the ACH’s (automated clearing house) same-day network to accelerate the processing, clearing, and settlement of transactions.
FIS has also developed a decision engine to choose the quickest, most affordable option for each transaction. This engine determines the network to route the payments over.
The ability to link with the ACH enables RealNet to initiate payments for all US deposit accounts, not just those linked to The Clearing House’s RTP network. The latter covers upto 70 percent of US deposit accounts.
“ RealNet intends to connect all the facets (of real-time payments) in the United States,” says Ginny Chappell, a senior VP at FIS. “Since the RTP network isn’t capable of connecting to all deposit accounts, businesses require separate links to each of the networks that support RealNet’s platform. RealNet serves as a common integration point for the two networks.”
According to the FIS, RealNet will support more B2B transactions e.g. payable and account receivable payments, as well as cross-border transactions. Business-to-business is a huge opportunity for instant payments. Companies will also take advantage of real-time payments for their B2C transactions like the issuing of refunds.
Businesses aside, users will be able to complete account-to-account transactions, like the movement of large amounts from a brokerage to a bank account when buying real estate.
“Account-to-account transactions power customers to stay on top of their money transfers, are more affordable than wire transfers, and way quicker than ACH payments,” Chappell says.
FIS will now focus on growing RealNet, a platform that uses APIs to link the company’s other central banking & payments infrastructure to international markets.
FIS’s network of networks will speed up real-time payments on a global scale. This will improve the experience for all users and accelerate money flow for businesses and customers.