WATCH: An Economical Solution for Global E-Commerce Payments

Apr 23, 2001, 01:00 ET from Worldwide Automated Transaction Clearing House

    WASHINGTON, April 23 /PRNewswire Interactive News Release/ -- Members of
 the Worldwide Automated Transaction Clearing House (WATCH), a banking
 industry-owned company that is developing a low-cost electronic system for
 batch-based international payments, are intending to employ the WATCH payment
 system as a solution for cross-border e-commerce payments, according to Joe
 Teves, Senior Manager, ACH Services at the Royal Bank of Canada.  Teves'
 comments were made during a presentation on WATCH at the PAYMENTS 2001
 conference hosted here by NACHA - The Electronic Payments Association.
     "WATCH is a suitable payment channel for global e-commerce transactions,
 in the same manner that national ACH systems are for domestic e-commerce
 payments," said Teves.  "The lack of integrated and inexpensive payment
 mechanisms is a major barrier to the growth of e-commerce, whether trade is
 carried out directly with trading partners or via e-marketplaces.  WATCH
 addresses these needs by offering a clearing and settlement infrastructure
 that standardizes processes, provides certainty of payment delivery times, is
 independent of correspondent banking relationships and is highly economical.
 Member organization and other industry initiatives working on the development
 of international e-commerce can count on WATCH to help close the global
 e-payments gap.  This is a significant extension of the original purpose of
 WATCH."
     In addition, Teves told bankers in attendance that they risk losing
 clients if they continue to neglect their customers' international payment
 needs.  "Your corporate customers doing business globally are consolidating
 their banking relationships, and they are increasingly looking for full-
 service providers of international payments," he said.  "At a recent
 international payments conference, a major pharmaceutical company reported
 that they are consolidating from 115 banking relationships in 1999 to three in
 2001, and eventually to one by 2003.  With a payments tool such as WATCH, you
 get the entire world for what it would cost to get into one country, and you
 keep that business."
 
     The WATCH Payment Model
     Under the WATCH payment model, the WATCH payment engine receives a payment
 file from a member bank in either that bank's national payment system format
 or an accepted international format.  The engine then converts the file into
 the formats of the destination countries and distributes the payments to the
 local clearing systems.
     WATCH was incorporated in the United Kingdom in July 2000 as a company
 limited by guarantee, and is owned by financial institutions representing 11
 countries and seven currencies.  WATCH expects to be ready to process payments
 in 2002.  WATCH is an initiative open to all financial institutions, and every
 regulated financial institution can become a member.  Additional information
 on the business specifications and membership is available on the WATCH web
 site at http://www.globalach.org .
 
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SOURCE Worldwide Automated Transaction Clearing House
    WASHINGTON, April 23 /PRNewswire Interactive News Release/ -- Members of
 the Worldwide Automated Transaction Clearing House (WATCH), a banking
 industry-owned company that is developing a low-cost electronic system for
 batch-based international payments, are intending to employ the WATCH payment
 system as a solution for cross-border e-commerce payments, according to Joe
 Teves, Senior Manager, ACH Services at the Royal Bank of Canada.  Teves'
 comments were made during a presentation on WATCH at the PAYMENTS 2001
 conference hosted here by NACHA - The Electronic Payments Association.
     "WATCH is a suitable payment channel for global e-commerce transactions,
 in the same manner that national ACH systems are for domestic e-commerce
 payments," said Teves.  "The lack of integrated and inexpensive payment
 mechanisms is a major barrier to the growth of e-commerce, whether trade is
 carried out directly with trading partners or via e-marketplaces.  WATCH
 addresses these needs by offering a clearing and settlement infrastructure
 that standardizes processes, provides certainty of payment delivery times, is
 independent of correspondent banking relationships and is highly economical.
 Member organization and other industry initiatives working on the development
 of international e-commerce can count on WATCH to help close the global
 e-payments gap.  This is a significant extension of the original purpose of
 WATCH."
     In addition, Teves told bankers in attendance that they risk losing
 clients if they continue to neglect their customers' international payment
 needs.  "Your corporate customers doing business globally are consolidating
 their banking relationships, and they are increasingly looking for full-
 service providers of international payments," he said.  "At a recent
 international payments conference, a major pharmaceutical company reported
 that they are consolidating from 115 banking relationships in 1999 to three in
 2001, and eventually to one by 2003.  With a payments tool such as WATCH, you
 get the entire world for what it would cost to get into one country, and you
 keep that business."
 
     The WATCH Payment Model
     Under the WATCH payment model, the WATCH payment engine receives a payment
 file from a member bank in either that bank's national payment system format
 or an accepted international format.  The engine then converts the file into
 the formats of the destination countries and distributes the payments to the
 local clearing systems.
     WATCH was incorporated in the United Kingdom in July 2000 as a company
 limited by guarantee, and is owned by financial institutions representing 11
 countries and seven currencies.  WATCH expects to be ready to process payments
 in 2002.  WATCH is an initiative open to all financial institutions, and every
 regulated financial institution can become a member.  Additional information
 on the business specifications and membership is available on the WATCH web
 site at http://www.globalach.org .
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X17535418
 
 SOURCE  Worldwide Automated Transaction Clearing House