After 40 years, there’s a new player in the core payments infrastructure.
“It’s time to allow consumers to accept real-time payments,” says Michael Thomas, vice president of product development, The Clearing House. The last time the payments network was updated was with the addition of the Automated Clearing House (ACH).
He addressed the America’s Credit Union Conference Friday in Boston.
The real-time payment network (RTP) operates alongside ACH, card, wire, and check image networks.
While there are similarities with Paypal, RTP is a more secure alternative because it is “financial institution centric,” he says.
With Paypal, you don’t have confidence that the transactions are authenticated, he adds.
RTP works toward fraud control because it has the ability to identify bad actors in the payments system by the transactions made to and by them.