Bank of America and Wells Fargo in payment processing JV

Bank of America and Wells Fargo in payment processing JV

Bank of America and Wells Fargo are establishing a joint venture that will combine their respective payment processing systems to create a single, combined automated clearing house (ACH). Financial terms of the deal were not disclosed.

The banks say the new JV, called Pariter Solutions, will combine their respective processing technology and high payment volumes to create a single, more efficient platform.

Pariter - which is Latin for 'together' - will become the largest processor of ACH payments in the US, say the partners.

Stephanie Sturgis-Griffin, a senior vice president at Wells Fargo, will be CEO of the venture, while Walter Taylor, a senior vice president at Bank of America, will become chief operating officer. The company's board will consist of the CEO and one executive representative from each bank.

Commenting on the development, Sturgis-Griffin says Pariter Solutions "breaks down traditional, proprietary processing models".

"This new shared services provider will deliver high quality and enhanced payment processing capabilities that reflect significant efficiencies of scale. It is an important step toward payment convergence and efficiency in the industry," she adds.

The venture will have offices in San Francisco and North Carolina. Payment processing operations are expected to begin in late 2009.

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