More banks sign up to JHA PayCenter

The Clearing House (TCH) has revealed that 15 Jack Henry & Associates customers, including Dallas-based Pegasus Bank, will implement Jack Henry’s proprietary payments hub, JHA PayCenter.

JHA PayCenter will enable these financial institutes to connect to the RTP network, a new payment network that can be used to clear and settle real-time consumer and business payments through Jack Henry’s core and digital solutions. The RTP network currently reaches more than 50% of U.S. transaction accounts and adoption is growing.

Jack Henry & Associates is a provider of technology solutions and payment processing services primarily for the financial services industry.

First of many connections

These initial 15 institutions are expected to be the first of many Jack Henry clients that will connect to the RTP network through JHA PayCenter. Pegasus Bank, which has more than $657 million in assets, and the other banks in this first wave will be able to offer their consumer and commercial accountholders, for the first time, the ability to receive real-time payments sent by accountholders at a continually expanding number of federally-insured depository institutions without incurring interbank settlement risk.

JHA PayCenter’s open infrastructure will support product development directly by financial institutions and other third-party mobile and online banking vendors that want to leverage the RTP network. RTP technology supports payments innovation and is expected to lead to the development of modern payment services that will ultimately allow users to exchange non-payment messages and benefit from other value-added features.

Jenny Murphey, executive vice president and chief operating officer for Pegasus Bank – a locally owned financial institution in Dallas, Texas commented: “JHA PayCenter gives our institution the clearest, most cost-effective path to making faster payments a reality – now and as additional options emerge. Joining the RTP network will allow us to offer our customers more efficient payment services and empower them to receive their money faster with payments that clear and settle in real-time.”

Greg Adelson, vice president of Jack Henry & Associates and general manager of JHA Payment Solutions said: “We are strategically focused on providing modern payment solutions that help financial institutions of all sizes and charters deliver secure, convenient payment experiences. We look forward to partnering with Pegasus Bank and many other institutions as they continue to modernize their payment channels and meet the growing demand for real-time payments.”

Faster access to money and benefits of real-time payments

RTP technology will enable financial institutions of all sizes to create new payment services and ultimately allow users to exchange non-payment messages and leverage other value-added features.

Russ Waterhouse,  Executive Vice President of Product Strategy and Development, for The Clearing House added: “These initial institutions represent the first wave of banks and credit unions that will join the RTP network through Jack Henry. We are excited that Pegasus Bank and the other financial institutions will be joining the RTP network to offer customers faster access to their money and all the benefits of real-time payments.”

The Clearing House’s ACH service that dates back to 1853 and which is owned by the world’s largest commercial banks including Bank of America, Capital One, Wells Fargo, JPMorgan Chase and about 20 others, has a real-time payments system known as the RTP Network. The service touts itself as ‘able to provide a ubiquitous, safe, efficient, and equitable faster payment system by 2020’.

Three months ago, the Federal Reserve announced a proposed interbank 24x7x365 real-time gross settlement (RTGS) service FedNow.