Today Governor Josh Stein announced The Clearing House Payments Company L.L.C., a financial services provider, will add 200 jobs in Mecklenburg County. The company will invest $11.5 million to expand its operations to Charlotte.
“Charlotte is the second-largest financial center in the nation,” said Governor Josh Stein. “The Clearing House can capitalize on our state’s top-ranked business climate and top-tier talent that support the growing financial services ecosystem of our state.”
Founded in 1853, The Clearing House is one of the nation’s most experienced payments companies and banking associations, operating critical U.S. payment infrastructure that clears and settles more than $2 trillion each business day through wire, ACH, real-time payment, and check-image exchange services. Focused on systems that are secure and reliable and available to financial institutions of all sizes, The Clearing House drives payments innovation, supports industry collaboration, and provides strategic thought leadership on the future of payments. Its expansion in Charlotte will establish a modern, secure, and flexible presence that supports the company’s long-term business growth, client engagement, operational resilience, and employee experience.
“We’re excited to open a new office in Charlotte, one of the nation’s leading banking and financial services hubs,” said David Watson, President and Chief Executive Officer of The Clearing House. “With its deep talent pool and strong financial services community, Charlotte is an ideal location for The Clearing House to build on our longstanding presence in North Carolina and strengthen relationships with clients in the region while creating new opportunities to connect with financial institutions across the country. We look forward to becoming an even more active part of the area's thriving banking and financial services industry.”
“North Carolina is a national hub for the finance and fintech sectors,” said N.C. Commerce Secretary Lee Lilley. “Companies like The Clearing House can bank on the opportunities, workforce, and strategic advantages that North Carolina offers growing financial firms.”
Although wages for the positions will vary, the average annual salary will be $162,322, which exceeds the Mecklenburg County average of $90,706. These new jobs could create a potential annual payroll impact of more than $32.4 million for the region.
The Clearing House expansion will be facilitated, in part, by a Job Development Investment Grant (JDIG), which was approved by the state’s Economic Investment Committee earlier today. Over the course of the 12-year term of this grant, the project is estimated to grow the state’s economy by $1.3 billion. Using a formula that takes into account the new tax revenues generated by the new jobs and capital investment, the JDIG agreement authorizes the potential reimbursement to the company of up to $2,430,000, spread over 12 years. State payments occur only following performance verification each year by the departments of Commerce and Revenue that the company has met its incremental job creation and investment targets.
The project’s projected return on investment of public dollars is 282 percent, meaning for every dollar of potential cost to the state, the state receives $3.82 in state revenue. JDIG projects result in positive net tax revenue to the state treasury, even after taking into consideration the grant’s reimbursement payments to a given company.
Because The Clearing House chose a site in Mecklenburg County, classified by the state’s economic tier system as Tier 3, the company’s JDIG agreement also calls for moving as much as $810,000 into the state’s Industrial Development Fund – Utility Account. The Utility Account helps rural communities anywhere in the state finance necessary infrastructure upgrades to attract future business.
“This announcement highlights the important role that financial services play in supporting job creation in Mecklenburg County and in the state,” said Senator Caleb Theodros. “We are excited for the new opportunities The Clearing House and its new operation will bring to communities.”
“We appreciate the investment The Clearing House is making in Charlotte,” said Representative Becky Carney. “This expansion brings new jobs, strengthens our business environment, and reinforces the positive impact the financial services sector has on our economy.”
In addition to the North Carolina Department of Commerce and the Economic Development Partnership of North Carolina, other key partners in this project include the North Carolina General Assembly, Commerce’s Division of Workforce Solutions, the North Carolina Community College System, Mecklenburg County, and the City of Charlotte.