US private sector payments businesses opt for mega merger

Bank-owned payments body The Clearing House is merging its affiliated businesses - The Small Value Payments Company (SVPCo), Clearing House Interbank Payments System (Chips), Electronic Payments Network (EPN), Electronic Clearing Services (ECS) and National Check Exchange (NCE) - into a single organisation with an inclusive and unified governing board.

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US private sector payments businesses opt for mega merger

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Together these companies represent the entire spectrum of clearing and settling payments in the US.

Chairman of the board of The Clearing House, G. Kennedy Thompson, says although previously managed as separate businesses, the distinct units have been sharing technology: "With the migration of payments to electronic and the synergies between the organisations, it just makes sense to combine our strengths to address the challenges and opportunities collectively."

Transition to the new structure is expected to take place over the next year with no change to daily operations at individual firms.

Jeffrey Neubert, CEO of The Clearing House, says: "This merger doesn't change our vision or plans, instead it enables us to carry them out in a common, inclusive, and cohesive way."

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