IBM says it has launched an “industry first” solution to support the full lifecycle of peer-to-peer (P2P) transactions, from the back office of financial institutions to the mobile device.
Banking Technology, Paybefore‘s sister publication, reports.
The project is a collaboration with Zelle, a P2P network in the US built on the clearXchange platform. Zelle now includes over 20 banks and credit unions, and is poised to reach an estimated 85 million US customers this year.
According to IBM, the integration of its Financial Transaction Manager (FTM) platform with Zelle “accelerates and simplifies payments through real-time processing between banks and consumers, enables same-day deposits and bill pay, removes fees, and offers seamless cash flow, all while remaining compliant with regulatory requirements”.
Banks can now offer their customers real-time P2P payments “without heavy IT spend or disruption to their legacy systems”, IBM says.
“This solution removes the friction typically experienced with other providers who essentially serve as a ‘digital cheque’ and not real time payments,” it adds.