U.S. banks take another step toward same-day payments processing

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The U.S. is trying to speed up its payment processes, and it looks like we're one step closer to that goal.

Payments solutions provider Jack Henry & Associates has partnered with The Clearing House to spread real-time transactions to more U.S. banks, according to Finextra.

TCH has partnered with JHA Payment Solutions Group, a division of Jack Henry & Associates, to bring TCH's real-time platform to 6,300 additional banks and credit unions when the platform launches.

This partnership would link individual banks to the system that TCH is currently creating with other partners such as ACI Worldwide and VocaLink. This could smooth the transition for the real-time payments system in the U.S. once it begins rolling out at the end of September.

The U.S. ranks behind several other nations in terms of payment speed, as settlements currently take several business days. To change this, the Federal Reserve has approved enhancements to a plan that would require same-day payments at all banks.

This move toward same-day processing is one step in the increasingly complex payments ecosystem. From mobile wallets such as Apple Pay to virtual currency such as Bitcoin, the way we spend our money is changing.

Evan Bakker and John Heggestuen, analysts at BI Intelligence, Business Insider's premium research service, have compiled a detailed report on the payments ecosystem that drills into the industry to explain how a broad range of transactions are processed, including prepaid and store cards, as well as revealing which types of companies are in the best and worst position to capitalize on the latest industry trends.

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Here are some key takeaways from the report:

• 2016 will be a watershed year for the payments industry. Payments companies are improving security, expanding their mobile offerings, and building commerce capabilities that will give consumers a more compelling reason to make purchases using digital devices.
• Payments is an extremely complex industry. To understand the next big digital opportunity lies, it's critical to understand how the traditional credit- and debit-processing chain works and what roles acquirers, processors, issuing banks, card networks, independent sales organizations, gateways, and software and hardware providers play.
• Alternative technologies could disrupt the processing ecosystem. Devices ranging from refrigerators to smartwatches now feature payment capabilities, which will spur changes in consumer payment behaviors. Likewise, blockchain technology, the protocol that underlies Bitcoin, could one day change how consumer card payments are verified.

In full, the report:

• Uncovers the key themes and trends affecting the payments industry in 2016 and beyond.
• Gives a detailed description of the stakeholders involved in a payment transaction, along with hardware and software providers.
• Offers diagrams and infographics explaining how card transactions are processed and which players are involved in each step.
• Provides charts on our latest forecasts, key company growth, survey results, and more.
• Analyzes the alternative technologies, including blockchain, which could further disrupt the ecosystem.

To get your copy of this invaluable guide, choose one of these options:

1. Subscribe to an ALL-ACCESS Membership with BI Intelligence and gain immediate access to this report AND over 100 other expertly researched deep-dive reports, subscriptions to all of our daily newsletters, and much more. >> START A MEMBERSHIP
2. Purchase the report and download it immediately from our research store. >> BUY THE REPORT

The choice is yours. But however you decide to acquire this report, you’ve given yourself a powerful advantage in your understanding of the payments ecosystem.