BNY Mellon is tapping the clearXchange network to enable its treasury services clients to make real-time payments to consumers through their email addresses or mobile numbers.
ClearXchange, operated by the bank-backed Early Warning consortium, acts as a clearing house for P2P online payments transfer, enabling customers to send funds directly from their bank accounts to the recipients' using only an email address or mobile phone number. The platform is owned by Bank of America, BB&T, Capital One, JPMorgan Chase, PNC, US Bank, and Wells Fargo.
While BofA, US Bank and Chase have all begun offering peer-to-peer money transfers to consumer mobile phones over ClearXchange, BNY Mellon becomes the first to use the network for treasury services, facilitating payments to other financial institutions, enabling clients to send payments directly to any payee with a bank account in the US.
The bank says that its new tokenised payments service eliminates the cost and hassle of cheques as well as the need for clients to store or process payees' bank account information, and also provides a secure, convenient experience for consumers.
Clients will send a payment request file to BNY Mellon that includes the payees' email address or mobile number, the payment amount and up to 200 characters of remittance data.
Payees already registered with clearXchange will receive an email or text notification that a payment has been originated and will be posted to their bank account. Recipients who are not yet registered will receive notification of payment and instructions on how to complete the one-time registration. Clients have the option to send payments next-day or in real-time.
The service is being made available across various industries for one-time or recurring payments to consumers, including insurance claims, account refunds, rebates and human resource reimbursements.
Tony Brady, global head of business strategy and market solutions, BNY Mellon treasury services business, says: "Tokenised Payments will give clients access to the increased speed and cost efficiency benefits of faster payments while simultaneously strengthening cyber and information security."