Customers Bank plans blockchain-based payments with Tassat
Customers Bank has signed a business-to-business (B2B) payments deal with Tassat. The bank is deploying the TassatPay Network, which features real-time B2B payments and integration of digital and legacy payment rails.
TassatPay Network is “the cornerstone” of Customers Bank’s B2B payments strategy
Tassat says the partnership will deliver enhanced payments functionality for the bank’s business clients and low-cost core deposit growth for the bankIt has kicked off a national expansion, with offices opened in Florida, Texas, and Illinois
According to Tassat, Customers Bank chose it for its “digital payments expertise and track record” of running a high-volume B2B payments platform.
The firm uses blockchain technology to tokenise US dollar deposits at banks to provide “secure, frictionless instant payments”.
It offers an API that lets bank customers embed its capabilities into their own systems. Tassat’s first implementation was launched in 2019 and has since processed “billions of dollars” in transactions over digital rails.
Customers Bank is a full-service community bank in the US, and holds assets of around $18.8 billion. It is one of the country’s top five Paycheck Protection Program (PPP) lenders, having provided over $9 billion through a hybrid of fintech and traditional banking platforms.
Lagging behind
Customers Bank chief operating officer, Sam Sidhu, says B2B payments have lagged behind consumer payments. He describes TassatPay Network as the “cornerstone” of the bank’s B2B payments strategy.
“We expect our clients in key verticals will invite their important trading partners to join TassatPay, bringing us new clients and low-cost deposits.”
Ron Totaro, Tassat CEO, says “most companies struggle with the limitations of antiquated payment rails”. But Customers Bank, in his view, is “at the forefront of digital evolution and fintech partnerships”.
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