ClearXchange is a P2P payments network that currently allows its customers of its owners – Bank of America, JPMorgan, Wells Fargo, Capital One, and US Bank, the access to send funds directly from their bank accounts to the recipients’ using only an email address or mobile phone number.
ClearXchange came on board as a bank-led effort to make Peer-to-peer payments easier for financial institution customers.
Over 15 financial institutions across the United States including early adopter FirstBank, have signed agreements to join the network. This network allows millions of consumers the ease to send money directly from one deposit account to another using only the recipient’s email address or mobile number.
The aim of ClearXchange, is to provide faster, safer payments made accessible to all people in the United States and delivered by banks and credit unions.
Its focus is on real-time messaging and funds accessibility, while the Clearing House’s complimentary effort has been trained on real-time clearing and settlement.
Over the years, Early Warning has made significant strides toward making this real-time vision a reality.
In February, Bank of America and U.S. Bank went live with real-time payments on the ClearXchange network. It was followed by Capital One, Chase and Wells Fargo.
It’s newest members include BNY Mellon, Citi, First Tech Federal Credit Union, and Frost Bank.
ClearXchange has also entered into several strategic agreements to expand the reach of its network and provide a ubiquitous solution for member financial institution customers.
About ClearXchange Acquisition
Early Warning has completed the acquisition of ClearXchange. The acquisition is expected to create real-time payments through banks and credit unions. The acquisition was announced on January 12, 2016, via a press release.
It read that SCOTTSDALE, Ariz – Early Warning, the leader in fraud prevention and risk management, today announced the completion of its acquisition of ClearXchange, which is the largest financial institution-led digital payments network in the United States.
The integration of Early Warning’s industry-leading fraud prevention services, authentication capabilities, and bank network with the scope of ClearXchange’s digital payments solution is poised to create the largest, most secure real-time payments ecosystem in the United States’, said Paul Finch, who is the chief executive officer of Early Warning.
Now consumers, businesses and government agencies can seamlessly send as well as receive payments with unparalleled speed, accuracy, and security via the network. The acquisition is trying to eliminate friction from real-time payments.
The initial phase of the real-time platform is expected to go live with banks in the first quarter of 2016 and will enable instantaneous person-to-person (P2P) payments and check deposits. Financial institutions that are currently participating in the network represent approximately 65% of the demand deposit accounts in the U.S. Participation in the network is open to all banks and credit unions in the United States regardless of size, charter, or location.
According to Finch, “Early Warning vision for the future is real-time payments that are universally accessible, secure, and provide the experience and convenience that all types of users want”. Early Warning believes the best payments solution is one that is developed, secured, and delivered by financial institutions.
“The industry is quite committed to a broad collective effort in developing the innovative services their customers demand” as stated by Bill Demchak, chairman, president and chief executive officer of the PNC Financial Services Group Inc., which recently joined the network. Early Warning is unique in its ability to deliver consumers and businesses faster payments with superior convenience broader reach, as well as greater security.
ClearXchange offers a service for individuals who do not have a deposit account with network banks, in order to enable such ClearXchange.com users to receive money from a network bank customer using the user’s email address or mobile phone number.