BofA’s Pay to Card Brings the Bank Into the Fast-Developing Market for Speedy Payouts - Digital Transactions (2024)
Bank of America Corp.’s decision to introduce fast payouts to consumer accounts globally brings a major financial institution into a market that is attracting increasing interest from an array of payments providers. Pressure for such services has grown more intense with the growth of the gig economy and recent needs such as pandemic relief.
BofA said Thursday it is rolling out Pay to Card, a service that enables insurance, tuition, refunds, rebates, contractor fees, and other urgent payments within five minutes inside the United States. For payouts to overseas accounts, Pay to Card “often” completes transfers within half an hour, BofA says. The service relies on debit card details to process payments to holders’ accounts. The bank argues debit cards offer consistency across borders, as bank-account details vary country-to-country but debit cards feature the same number of digits.
BofA sees the new service filling a need that has grown more urgent over the past year as consumers have struggled with the impact of the coronavirus. “As the latest addition to our suite of digital B2C payment options, Pay to Card offers enhanced speed, flexibility, and convenience,” said David Kretz, head of global payments in global transaction services at BofA, in a statement. Another factor behind the new service, according to the bank, is the growth of e-commerce in recent years, which has forced companies to find ways to quickly pay refunds and other sums to consumers domestically and overseas.
“This is an interesting opportunity for Bank of America,” notes Sarah Grotta, director of the debit and alternative products advisory service at Mercator Advisory Group, Marlborough, Mass. She notes fintechs like Payoneer, Tipalti, and PayPal Holdings Inc.’s Hyperwallet (PayPal) have developed platforms for mass payouts, but argues BofA has an edge with its “built-in business clients and consumers, allowing the payment to seamlessly flow from one account to another, internally in some instances.”
Grotta adds BofA’s new service could find strong demand from public-sector entities. “They have significant disbursem*nt needs and many of these payments are still carried out on checks today,” she says.
The bank refuses to identify third-party companies supporting the service, beyond telling Digital Transactions News that “there’s more than one provider.” The news from BofA follows by a couple of months Visa Inc.’s introduction of Visa Direct Payouts. The service relies on the Visa Direct network to enable fast payments to debit and prepaid cards and bank accounts in 170 countries, though only cards can be accessed within the United States. Mastercard Inc. offers a similarly designed service called Mastercard Send.
We'll send withdrawals using the RTP network when they're below the transfer limit and sent to an eligible bank. Many banks are RTP-enabled, including: Bank of America.
Pay-by-bank is a payment method that allows customers to make online purchases directly from their bank accounts, without the need for a credit or debit card.
The company provides unmatched convenience in the United States, serving approximately 69 million consumer and small business clients with approximately 3,800 retail financial centers, approximately 15,000 ATMs (automated teller machines) and award-winning digital banking with approximately 57 million verified digital ...
The Return to Player (RTP) is a key factor in understanding the payouts of casino games, including slot machines and table games. RTP is a percentage that indicates the average amount of money that will be returned to players as winnings over a long period of play relative to the total amount wagered.
An ACH transfer is completed through a clearing house — a network of financial institutions — and is used most often for processing direct deposits or payments. A wire transfer is typically used for high-value transactions and is completed through a bank, which makes it faster, but it does have a fee.
Open Banking is the simple and secure payment alternative allowing customers to pay for goods and services, online and in-store. Payments are made directly from the customer's bank account into the Merchant's bank account, and are cheaper than traditional payment methods.
Bank of America is one of the largest consumer banks in the United States, with over $3 trillion in assets. The largest shareholder is Berkshire Hathaway, along with fund managers like BlackRock and Vanguard.
Bank of America CEO Brian Moynihan took a slight pay cut last year as the bank's profit fell. He earned $29 million in 2023, down from $30 million in 2022 and $32 million in 2021. As in previous years, he earned a base salary of $1.5 million.
Bank of America is a publicly held company owned by shareholders. Institutional investors own about 59% of its shares. The largest shareholder is Warren Buffett's Berkshire Hathaway, which owns about 13% of the shares.
You'll be treated as retiring under The Bank of America 401(k) Plan if, when your employment ends, you have at least 10 years of vesting service and your age plus years of vesting service equal at least 60. Make the most of what you've accumulated. It's wise to review your options with your personal advisor.
1. JPMorgan Chase. JPMorgan Chase, or Chase Bank, is the biggest bank in America with nearly $3.4 trillion in assets. It boasts a vast network of over 4,800 physical branches and more than 15,000 ATMs.
Bank of America is one of the world's leading financial institutions, serving individuals, small- and middle-market businesses, large corporations, and governments with a full range of banking, investment management and other financial and risk management products and services.
Bank of America and Truist are part of the group that owns Zelle, and both offered insight that helps put the latest progress report from the peer-to-peer payments service in perspective. Example: Now BofA sees more outbound Zelle payments than outbound checks.
Members of The Clearing House include JPMorgan Chase & Co., Bank of America Corp., Citigroup Inc., Bank of New York Mellon Corp., Deutsche Bank AG, U.S. Bancorp and Wells Fargo & Co.
At U.S. Bank, we believe you don't have to choose. The RTP network and FedNow Service can both help you move money efficiently, securely and immediately.
Banks that Cash Third-Party Checks: Some banks that may cash third-party checks include Bank of America, Chase Bank, Citibank, First National Bank, HSBC Bank, Tuist Bank, M&T Bank, PNC Bank, US Bank, and Navy Federal Credit Union.
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