U.S. bank discusses more about their Secure Vault Payments Strategy, indicating they plan on targeting billers such as universities, governments, and utilities in the first quarter of next year.
They are bullish on the good funds model SVP offers, which does serve to mitigate a major risk component of other ACH-based alternative payment products and might be more appealing to consumers who are concerned about maintaining the safety of their account credentials while shopping or paying online.
U.S. Bank ($291 billion in assets) has joined a bank-and-NACHA-led online payment network called Secure Vault Payments
(SVP) that uses the ACH network to process online payments. Mary Burchette, senior vice president of treasury management product management at U.S. Bank, who spoke with us this afternoon about this initiative, was too polite to call it a potential PayPal killer. “It’s a payment alternative that’s offered by banks rather than companies like PayPal,” she notes. “I don’t think it’s going to eliminate PayPal but for certain consumers and businesses, it’s an alternative that will resonate with them,” she says.
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