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December 26, 2022 • Issue 22:12:02

Real-time and card payments

coexisting – for now

Sionic is part of a growing army of financial institutions
and financial technology companies offering pay-by-
bank services, and more can be expected once the Federal
Reserve's FedNow real-time payments infrastructure goes
live next summer. "There's going to be a lot of pressure on
financial institutions to offer real time payments," said
Rusiru Gunasena, senior vice president at TCH and point
man for RTP.
Are credit cards on the block?

JPMorgan Chase has its own spin on pay-by-bank; it is
working with Mastercard to roll out a pay-by-bank service
that leverages the ACH network. ACH payments are faster
than card and check payments; sometimes they can be
completed on a same-day basis, but they are not instant.
ACH payments, like credit card payments, are settled in
batches.
By Patti Murphy
In a true real-time, or instant payments environment, a
PMorgan Chase may be the largest acquirer of payee's account is credited within seconds of the payer's
credit and debit card payments in the United account being debited, as settlement is near instantaneous.
States, but that hasn't stopped the mega-bank
J from investing in initiatives that could displace When news of Chase's plans broke there was copious
credit and debit card payments. And it is not alone. speculation that it could signal the end of the bank's card
business. The bank reported processing 31 billion card
"We're talking with multiple banks right out of the gate," payments with a combined value of $1.7 trillion in 2021,
said Ron Herman, founder and CEO of Sionic. Based in making it the largest U.S. acquirer. "How JPMorgan's plan
Atlanta, Sionic has built a real-time, omnichannel, pay-
by-bank service that it's preparing to pilot with U.S. Bank,
parent of Elavon, in different verticals beginning in the
first quarter of 2023. Contributed articles inside by:

Sionic offers an app merchants can use with existing POS
systems and selecting cash as the tender during checkout. Natasa Cvijanovic .................................................................................28
In-store customers scan QR codes generated by a mobile Adam Atlas ..............................................................................................32
app to initiate payments, or the "pay by bank" option
when using touch screen POS devices and on ecommerce Chad Otar ................................................................................................34
sites. Payments process over RTP, the real-time network
operated by The Clearing House (TCH), and get deposited Allen Kopelman .....................................................................................35
to the merchant accounts nearly instantaneously.

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