HSBC Bank USA (HSBC) has announced the launch of real-time payments capabilities on the RTP network that allow business and institutional clients of all sizes to pay and be paid immediately with enhanced convenience and security. With this latest enhancement in HSBC’s implementation of the RTP network, clients have begun sending real-time payments, having been able to receive real-time payments since July 2019.
The RTP network is developed by The Clearing House (TCH) and its owner banks, including HSBC. The bank is using the RTP network to provide business and institutional clients with payment functionality that supports activities such as just-in-time cash management, instant delivery of payroll, and immediate customer refunds. The RTP network is also available to HSBC’s individual customers when receiving payments from businesses and other individuals.
“As digital banking and e-commerce are embraced around the world, people expect to move money just as fast as they are able to check their account balance or buy a new app for their mobile phone,” said Drew Douglas, head of Global Liquidity and Cash Management for the United States and Canada, HSBC. “Our US customers from individual checking account holders to multinational corporations are now able to receive payments at the speed of modern life. Now, our US business clients can send RTP payments, and our retail customers soon will be able to do the same.”
The roll-out of capabilities for HSBC’s consumer customers to send payments via the RTP network is expected to be completed early in 2020.
The payments industry in the US is undergoing a real-time revolution for in-country transactions. Globally, 46 real time payment networks are live, and 18 more are in discussion or development. HSBC is supporting the transition to real time payments in many countries, including the US.
HSBC has been working with TCH and other banks to modernise the US payments industry through the development and adoption of the RTP network, which moves US dollars in real-time between accounts at any US depository institution on the RTP network. Every federally insured U.S. depository institution is eligible to directly participate in the RTP network.
Launched in 2017, the RTP network now reaches more than 51% of the demand deposit accounts in the US, and transaction volume is growing steadily.
“We are delighted that HSBC is expanding the benefits of the real-time payments revolution to institutional and business clients,” said Steve Ledford, senior vice president of Product Strategy and Development for The Clearing House. “HSBC’s commercial clients can now send and receive money in real time, as well as benefit from other enhanced payments functionality, such as real-time cash management.”
HSBC says that other RTP network benefits include:
- Completed payments in seconds, 24/7/365 with no 'off hours' and no holidays.
- Real time availability of funds.
- Instant confirmation to both parties.
- Improved control: only the account owner can intiate payments.
Customers who are currently eligible to make and receive payments via the RTP network are those with a US dollar account in HSBC USA’s Global Banking and Markets, Commercial Banking and Privating Banking units, and use HSBCnet or HSBCConnect for online banking services.
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