Comerica Bank and client Monex USA work together to introduce new OBO capabilities.
Comerica Bank “Comerica” announced it will become an early adopter of The Clearing House’s revised rules for domestic On-Behalf-Of (OBO) payments on the RTP® network, the largest and most utilized instant payments network in the United States operated by The Clearing House. Comerica Bank, and its client Monex USA, a leading provider of international payments, corporate FX and currency risk hedging services, took part in one of the first OBO payments under the revised rules, reinforcing Comerica’s dedication to delivering instant payment solutions designed for speed, efficiency and flexibility for both direct and indirect customers.
OBO payments are RTP transactions originated by a sender to make a payment for another person (i.e., on behalf of that other person). The sender is the titled owner of the account from which the RTP payment is sent. The new rules replace existing requirements for Payment Service Providers and apply more broadly to intermediated RTP activity, introducing a consistent framework focused on payment transparency, due diligence, risk management and fraud reporting obligations.
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“Introducing this new capability is a testament to Comerica’s commitment to providing our customers seamless, on demand access to funds, both for themselves and their own customers,” said Allysun Fleming, Comerica Bank Executive Director of Payments. “RTP OBO payments unlock real-time disbursement use cases at scale, such as payroll and benefits, marketplace payouts, embedded payments, and more. We are excited to participate in an ecosystem that enforces transparency of funds.”
A comprehensive risk management framework for OBO payments on the RTP network broadens the benefits of RTP payments through enhanced oversight of intermediary payments providers. Through the new requirements, the RTP network strengthens participants’ ability to manage risk for growing payment use cases and will increase momentum for the 24/7 real-time payment network that already processes more than one million transactions per day for more than 950 banks and credit unions.
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“Comerica was one of the first banks to join the RTP network and they continue to be an instant payments early adopter by offering OBO capabilities to customers,” said Jim Colassano, Senior Vice President of RTP Business Product Management at The Clearing House. “We are excited to see how Comerica will utilize OBO payments to provide innovative capabilities to its customers, such as Monex USA.”
Monex USA is a digital payments platform designed for managing foreign currency and global transactions securely and conveniently. RTP OBO payments for domestic transactions will enable Monex USA to facilitate instant payments at scale, greatly simplifying their operational process and providing enhanced transparency end to end.
“As Monex USA deepens its investment in advanced payment systems to harness the intersection of technology and digital commerce, RTP strengthens our value proposition by delivering not only speed, but also greater control and transparency – empowering clients with real-time insights and enhanced decision-making capabilities,” said John Doyle, CEO of Monex USA.
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Source: PR Newswire
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