Fintech

Fintech NorthOne Offers a Real-Time Payments Capability Via The Clearing House – Digital Transactions

Five years on, the Real Time Payments network from The Clearing House Payments Co. LLC continues to gain new members outside of legacy banking. The latest is NorthOne, a fintech that offers financial management services for small businesses, startups, and freelancers.

New York City-based NorthOne, which was founded in 2016, said it is one of the first fintechs to offer TCH’s RTP service. It is working with The Bancorp Bank N.A. to do so. NorthOne clients will be able to receive real-time payments immediately with an update later to enable sending payments on the RTP network.

“For small business owners, cash flow and liquidity are paramount. By removing payment waiting times, we’re able to free up a frustrating technical bottleneck for our customers, making it easier for them to operate their business efficiently,” Eytan Bensoussan, NorthOne cofounder and chief executive, said in a statement.

NorthOne says the RTP addition is integral to its growth. “We’re building a financial platform that acts as the sophisticated finance department small businesses could once only dream of. The launch of Real-Time Payments is an important part of that puzzle,” a NorthOne blog post states. NorthOne recently closed on $67 million in funding, according to research firm CBInsights.

Competition among real-time payments providers is poised to blossom this year as the Federal Reserve preps its FedNow service. This real-time payment service has been in testing and is set for launch this summer.

It might have some catching up to do, given TCH’s RTP service has had a six-year headstart. Launched in 2017, the RTP service had 285 participating institutions as of November. In the 2022 third quarter, there were 45 million transactions valued at $19.7 billion on the RTP network. TCH says the RTP service reaches 62% of U.S. demand-deposit accounts.

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