The evolution of real-time payments: Reimagining account-to-account transfers
Customers transferring funds between their own accounts at the same or different institutions can face risky delays through slow ACH or bank wire rails. Yanilsa Gonzalez-Ore, North America Head of Visa Direct, explains why this space is ripe for disruption.
In today’s world of payments, speed matters. Consumers are increasingly expecting “faster everything”, a demand driven by the proliferation of peer-to-peer (P2P) payments enabling individuals to quickly send money to a friend or pay for products and services. The access, speed and convenience of real-time1 payments are becoming the norm and that means greater opportunity for financial institutions to differentiate the money movement experiences they deliver to their customers. One area slower to initiate real-time speed is in traditional account-to-account (A2A) transfers.
A2A transfers happen when a customer transfers funds between their own accounts (brokerage, crypto, savings, and checking) held at different financial institutions, such as a savings or brokerage account to a separate checking account. Too often, consumers must rely on outdated processes such as traditional Automated Clearing House (ACH) methods that can take days to complete, ultimately impacting time-sensitive investment opportunities and on-time bill payments.
“Today, consumers are accustomed to being able to quickly send money to friends and family using various P2P payment platforms. But moving money between your own accounts is still a lengthy and inefficient process,” says Yanilsa Gonzalez-Ore, SVP, North America Head of Visa Direct.
Surveyed U.S. consumers own, on average, 8 financial accounts and conduct 15 transactions between them per year, accounting for $3 trillion in annual money movement via A2A transfers.2 This can result in the need to optimize finances and investments across those accounts – and consumers want and expect to do it with ease anytime, anywhere.
A survey by Visa and Aite Group found that 90 percent of surveyed U.S. consumers want the flexibility of real-time transfers between their financial accounts.3 And 70 percent of surveyed U.S. consumers said they prefer card-based real-time payments for transfers.4