The billing and payments ecosystem is constantly evolving. Our blog is a place where we provide context about changes in this ecosystem that can impact both our business and our clients. This year, we reported on significant developments in areas including faster payments, digital disbursements, and card account updater. Here’s a look back at three major themes we explored in 2019.
- Faster Payments Expand
In August, The Federal Reserve announced that a new real-time payment and settlement service, called the FedNow℠ Service, will be developed by Federal Reserve Banks. Available 24/7, the FedNow Service will support faster payments in the US by facilitating the near-instant transfer of funds. As a result, both individuals and businesses can benefit from faster payouts and quicker settlement of debts, including bill payments. The availability of FedNow as a public utility can help participants better manage their finances and avoid unnecessary fees, charges, and penalties.
In addition to FedNow, two other faster payment rails – The Clearing House’s RTP® network and NACHA’s Same Day ACH – also achieved significant milestones. Click here to learn more about existing faster payments systems in the US and around the world.
- Digital Disbursements Emerge
If there’s one lesson that can be learned from the rapid evolution of faster payments, it’s that people want their money as quickly as possible. The world we live in is increasingly on-demand and consumers’ expectations are rising accordingly. Digital disbursements are emerging as a consumer-friendly alternative to paper checks for business that owe money to their customers.
What are digital disbursements? Get a primer by visiting our blog that discusses how digital disbursements leverage existing payment rails to deliver funds to consumers quickly and easily, without paper checks. And don’t forget to explore five different use cases for digital disbursements in industries including healthcare, insurance, and real estate. Finally, our March webinar gave a holistic view of digital disbursements with perspectives from Bank of America and Zelle® on how the technology can be a game-changer for both businesses and consumers.
- Card Account Updater for Bill Payments
Card Account Updater (CAU) can be a useful tool for merchants across all industries. While it’s probably best known for extending card-on-file recurring e-commerce charges like monthly subscriptions, it can also be invaluable for billers that provide their customers the option to save card account information for one-time, autopay, or recurring bill payments. CAU can help prevent payments breakage by replacing stale card information with the latest updates. Learn more about the benefits of CAU for billers in our blog, including how it can improve operational efficiency and deliver a better customer experience.
