fbpx
PaymentsJournal
SUBSCRIBE
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • COVID-19
  • News
  • Resources
No Result
View All Result
PaymentsJournal
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • COVID-19
  • News
  • Resources
No Result
View All Result
PaymentsJournal
No Result
View All Result

Discover to Offer Shoppers Pay-by-Bank

Don Apgar by Don Apgar
February 16, 2022
in Analysts Coverage, Mobile Payments
0
Discover to Offer Shoppers Pay-by-Bank

Discover to Offer Shoppers Pay-by-Bank

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

Discover Financial Services is expected to announce a deal this week with fintech company Buy It Mobility Networks that will enable Discover cardholders to pay merchants directly from their bank accounts with no debit or credit card needed. This type of payment process has long been popular in the Asian region, being driven by big commerce players WeChatPay and AliPay, but has been slow to catch on in the U.S. where shoppers prefer to use branded credit and debit cards for purchases. Banks that issue cards to consumers benefit from significant interchange fee income when their cards are used to make purchases, and so have been slow to make alternative payment methods available to their customers. The Discover Global Network is reported to include more than 11 million merchants, who would presumably welcome a direct-from-bank payment process as a way to reduce the interchange fees they pay to accept bank-issued credit and debit cards.

Buy It Mobility (BIM) technology uses the ACH network to move money between consumers’ banks and the merchants they purchase from, but it’s not entirely frictionless; consumers must enroll to participate. Merchants are happy to entice consumers to do so by sharing a portion of their fee savings in the form of discounts and incentives; a gallon of gasoline can be up to $0.25 cheaper at a participating station when the consumer opts to pay with BIM.

While Discover cards are widely accepted at merchants in the US, the card network has been working hard to increase its share of purchase transactions. 

“It’ll give us at Discover another arrow in the quiver,” said Jason Hanson, senior vice president of global business development at Discover.

Overview by Don Apgar, Director, Merchant Services Advisory Practice at Mercator Advisory Group

Tags: ACHAliPayBanksCreditDebitDiscoverMobile PaymentMobile PaymentsWeChat Pay
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

    Analyst Coverage, Payments Data, and News Delivered Daily
    Sign up for the PaymentsJournal Newsletter to get exclusive insight and data from Mercator Advisory Group analysts and industry professionals.

    Must Reads

    Digital Enablement Capabilities Enhance the Online Customer Journey

    Digital Enablement Capabilities Enhance the Online Customer Journey

    June 24, 2022
    FICO Scores: From Industry Invention to Future-Proof Independent Metric

    FICO Scores: From Industry Invention to Future-Proof Independent Metric

    June 23, 2022
    Faster, Easier, & More Control: Where Payments Are Headed in the Future

    Faster, Easier, & More Control: Where Payments Are Headed in the Future

    June 22, 2022
    Ensuring Payments Are Collected on Time, Every Time

    Ensuring Payments Are Collected on Time, Every Time

    June 21, 2022
    How Merchants Can Use Mobile to Stay Vital to the Customer Relationship

    How Merchants Can Use Mobile to Stay Vital to the Customer Relationship

    June 20, 2022
    Digital Issuance for a Digital World 

    Digital Issuance for a Digital World 

    June 17, 2022
    Check Deposit Risk Mitigation for Financial Institutions 

    Check Deposit Risk Mitigation for Financial Institutions 

    June 16, 2022
    How Digital Innovation Makes Bill Collections Kinder (and More Effective) 

    How Digital Innovation Makes Bill Collections Kinder (& More Effective) 

    June 15, 2022

    • Advertise With Us
    • About Us
    • Terms of Use
    • Privacy Policy
    • Subscribe
    ADVERTISEMENT
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    • Industry Opinions
    • COVID-19
    • News
    • Resources

    © 2022 PaymentsJournal.com

    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Industry Opinions
    • Faster Payments
    • News
    • Jobs
    • Events
    No Result
    View All Result