The cutting edge of faster payments: Discovering new growth opportunities
The payments industry is in a seemingly constant state of rapid evolution. As consumers and businesses alike seek to take advantage of new and innovative means of buying and selling goods and services, the speed at which funds are moved between financial institutions has recently come under distinct pressure.
Historically, customers have paid for non-cash transactions using debit and credit cards (debit cards represent the largest volume of transactions for any single form of consumer payment) which are processed by an acquirer and paid out to the merchant in usually less than five business days. As technology continues to develop, business owners of all shapes and sizes are continually seeking ways to reduce the amount of their outstanding receivables and increase cash flows in order to more efficiently run their business, which can help mitigate relying on costly loan or capital advance products.
As the largest US merchant acquirer, Vantiv, now Worldpay, plays a vital role in the technological advancement of US payment systems. As key player in this multi-trillion dollar landscape, it was vital that WorldPay develop and continue to enhance innovative new faster payments capabilities. At the forefront of this movement, our push-to-card strategy provides settlement to prepaid, debit, and credit cards within 30 minutes of origination. This innovative new technology allows real-time payment of settlement deposits to merchant accounts, contractor payouts across ride sharing and real estate rental marketplaces, and disbursements of insurance claims and lottery winnings, among other use cases.
Worldpay’s financial institution partners across the industry play a crucial role in enabling faster payments. By partnering with us to facilitate push-to-card disbursements, these institutions not only drive card spend and interchange revenues, but allow for packaged offerings whereby multiple banking products can be bundled to create a stickier value proposition for merchants and consumers alike. This new platform continues to evolve throughout the financial institution community and creates a unique opportunity to issue more cards and drive spending on debit and credit cards, which in turn will drive bottom-line interchange revenue for financial institutions.
Faster payments represent a growing trend across the US and the benefits to enabling a push-to-card solution stretch across consumers, merchants, acquirers, and financial institutions alike.
To learn more about faster payments, you can watch this webinar.