Visa and Checkbook are continuing their ongoing partnership, with a new multi-year initiative that aims to make instant payments more available for all.
“In today’s ‘always on’ world, businesses and consumers demand quick and convenient access to cash flow – whether paying insurance claims, disbursing wages, tips or rebates – speed and efficiency have become the name of the game,” said Yanilsa Gonzalez-Ore, North America Head, Visa Direct in a prepared statement.
Through this collaboration, both companies will focus on streamlining global money movement and facilitating fund disbursements through Visa Direct. This builds on their previous joint efforts; in 2021, Checkbook was part of the Visa FastTrack program and contributed to integrating Visa’s Virtual Cards solutions.
Faster Payments for Businesses and Consumers
The collaboration between Visa and Checkbook signifies a step forward in the evolution of financial transactions. Instant payments, particularly with the release of FedNow last year, have emerged as a game-changer, offering speed and convenience compared to traditional payment methods.
Instant payments have the potential to transform varies areas of financial transactions—from payroll processing and supplier payments to peer-to-peer transfers. They also help reduce administrative burdens, minimize delays, and enhance overall business operations. According to Elisa Tavilla, Director of Debit at Javelin Strategy & Research, as more financial institutions adopt real-time payments, funds will move quicker than they do on the current systems those payments rely on: ACH.
Learning from Global Success
Although the acceleration of instant payments in the U.S. is imminent, there is much to lean from global innovation and adoption trends.
Brazil’s instant payments service, Pix, serves as a prime example of success in this arena. Processing more than three billion transactions per month, Pix boasts a staggering 70% adoption rate among Brazilian adults. Brazil’s central bank has recently spearheaded initiatives to enhance cross-border payments, positioning Pix as a frontrunner in these efforts and offering valuable insights for other countries seeking to develop their own instant payments solutions.
Similarly, the European Union Council has made significant strides in promoting instant payments, evidenced by an upcoming law slated to take effect in April. This legislation will mandate the full availability of instant payments in euros across the EU, signaling a commitment to advancing the accessibility and efficiency of payment systems within the region.
