Five US Clearing and Payments Houses Merge to Provide Market Cohesion

The Clearing House, Small Value Payments Company (SVPCo), and affiliated payments businesses have merged into a single payments company with one governing board. This reorganization involves: SVPCo, Clearing House Interbank Payments System (CHIPS), Electronic Payments Network (EPN), Electronic Clearing Services (ECS), and National Check Exchange (NCE). These companies represent the spectrum of clearing and settling payments – from paper to electronic. G Kennedy Thompson, chairman and CEO at Wachovia Corporation and chairman of the board of The Clearing House, said: ‘With the migration of payments to electronic and the synergies between the organizations, it just makes sense to combine our strengths to address the challenges and opportunities collectively.’ Customers will not be directly affected by the change. ‘It’s not like a typical merger, since these companies know each other and work together on a daily basis already,’ said Jeffrey Neubert, CEO of The Clearing House. ‘This merger doesn’t change our vision or plans, instead it enables us to carry them out in a common, inclusive, and cohesive way.’

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