To give you an idea how quickly the landscape of the payments industry can change, the biggest ACH Processor in the nation didn't exist until just now.Introducing Pariter Solutions...
our nation's biggest ACH Processor...
Wells Fargo and Bank of America said Thursday they are forming a joint venture to operate a single, combined automated clearinghouse (ACH) platform for both companies and their clients. Financial terms were not disclosed.
The joint venture, Pariter Solutions LLC, will be the country's largest processor of ACH payments, the banking giants said.
Through joint venture, the two companies will combine their strengths in advanced processing technology and high payment volumes to create a single, more efficient platform. It will also facilitate greater investment in innovation to deliver added value to clients through increased speed, broader product capability and capacity for higher volumes of cross-border payments.
An ACH payment is a mechanism for electronic funds transfers such as direct deposit, direct payment, business-to-business payments, e-checks, e-commerce payments and tax payments. Annual electronic payment volume doubles every five years, according to NACHA, the Electronic Payments Association. In 2007, nearly 14 billion ACH payments were made.
Payment processing operations are expected to begin in late 2009. The company will have offices in San Francisco and Charlotte.
Ownership of Pariter Solutions will initially reside with Wells Fargo and BofA. Stephanie Sturgis-Griffin, a senior vice president at Wells Fargo, will be chief executive of Pariter Solutions, and Walter Taylor, a senior vice president at Bank of America, will be chief operating officer.
The company's board will consist of the CEO and one executive representative from Wells Fargo and one from Bank of America. Shares of Wells Fargo rose a penny to $28.91, wile Bank of America shares fell 45 cents $36.35.
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