Selling vehicles can be a time-consuming process, as buyers often have to wait for bank approval before they can finalize the purchase. However, with real-time payments, sellers can receive instant access to the funds, making the entire process much faster and simpler. With instant payments, buyers can also be assured that they are getting exactly what they paid for, as the funds are transferred immediately upon purchase.
U.S. Bank and Driveway have announced a new service to utilize the increasing popularity and convenience of real-time payments. Customers selling vehicles on Driveway.com will now be able to have instant access to their funds via U.S. Bank’s RTP network. Shailesh Kotwal of U.S. Bank provides additional detail in Fintech & Finance News:
“We’re proud to deliver a new RTP solution that creates a faster, safer and more convenient payment experience for Driveway and its customers,” said Shailesh Kotwal, vice chair, U.S. Bank Payment Services. “Those selling cars on Driveway.com will benefit from an instant, frictionless payment experience while Driveway will achieve greater customer satisfaction from their innovative payment process.”
Utilizing the RTP solution for a big-ticket item, such as an auto sale, will enable customers to have instant access to those funds instead of the traditional 24-28 hour wait through ACH or longer through physical check. This highlights the ability to use real-time payments as a service differentiator in competitive marketplaces. The process for Driveway is explained in the article:
After a Driveway customer enters details about their car, they receive an instant quote. If the customer wants to proceed, they receive an email invitation to provide their payment and bank details via a Driveway and U.S. Bank co-branded digital payment portal. Following an in-person inspection by a Driveway Valet and finalized sale, the payment is instantly deposited into the car seller’s bank account via the RTP network.
Real-time payments are becoming increasingly popular in a variety of industries, and are likely to continue to grow in popularity in the years to come.
Overview by Jordan Hirschfield, Director of Research at Mercator Advisory Group