Consumers want the flexibility to move money quickly between their accounts. Are you meeting their demand?

By: Yanilsa Gonzalez-Ore

From instantly paying for products and services to sending money to a friend, consumers expect the nonstop access, speed, and convenience of real-time money movement. But when it comes to transferring money between their own accounts, it’s often a cumbersome, frustrating process.

Of the $53 trillion in U.S. consumer assets, $3 trillion move every year as account-to-account (A2A) transfers, the movement of funds between accounts held at two different financial institutions by the same individual [1]. Most transfers take three to five days via slow ACH and lack real-time authorization, leaving businesses more susceptible to fraud losses and risk exposure. Inefficiencies from these slow, antiquated money transfer methods can also create a poor customer experience. As people become increasingly accustomed to “real-time everything,” these suboptimal experiences are helping fuel a major shift in the A2A payment space.

Waiting is no longer working for consumers who want more control over their own money and the companies leading the charge in offering customers real-time money movement using their cards can benefit by attracting, retaining, and creating more engagement with their customers.

Consumer peer-to-peer (P2P) behaviors are driving expectations and demand for quick, seamless A2A transfers

U.S. consumers today own on average eight financial accounts and conduct fifteen transactions among them per year [1]. With more accounts comes more urgency to transfer money with ease, 24/7. From apps to digital experiences, consumers are one step ahead when it comes to technology adoption. Instant gratification across all facets of life is a “given,” and consumers expect financial institutions to keep the same pace. Most consumers want the flexibility that real-time money movement can offer through their financial institutions. In fact,?70% of?U.S. consumers surveyed by Visa and Aite Group strongly prefer card-based real-time payments for transfers. ?And 74% said they might consider switching to a financial institution that offers real-time transfers.

Today, consumers are being underserved by financial institutions that are very slow in adapting to their evolving needs. As people demand greater control and faster access to their money, fintech platforms are listening, responding, and shaking up the status quo. P2P platforms in particular have amassed enormous user bases by expanding features and becoming one-stop-shops for daily financial transactions. Seeing what’s already possible in P2P apps, financial institutions have the opportunity to ensure people no longer have to settle for outdated, slow account-to-account transfers. That’s why more and more companies and the consumers they serve rely on the help of Visa Direct to make real-time [2] money movement a reality.????

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Solving the money movement problem with the help of Visa Direct

At Visa, it is our responsibility as a leader in the payments industry to bring reliable solutions to the market that help our clients and their customers tackle problems, meet changing money movement demands, and elevate their digital payments capabilities. Visa Direct, our real-time [2] solution platform, helps consumers, businesses, and financial institutions to send and receive money to over five billion cards and accounts worldwide. By enabling next-generation money movement, Visa is helping consumers move funds between their accounts in real-time [2], by simply using their own eligible cards.

Card-based money transfers through Visa Direct can create better user experiences by making it easier for people to move and use their money in real-time [2]. When people make real-time transfers with eligible cards,?they can fund a new or existing account, load money to a digital wallet to send to friends and family, move funds to a brokerage account to make a trade or buy stock, and cash out of an account. These use cases represent the vast opportunities for financial institutions to utilize Visa Direct, adding more value to everyone involved in A2A transactions.

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A win-win for everyone in the payments ecosystem

With the trusted security of the Visa network, Visa Direct brings benefits to both consumers and financial institutions. With more than sixty years of experience in the payments industry, Visa’s security, risk controls, and operational resiliency can help ensure the safe and reliable facilitation of money movement.

Account-to-account transfers should—and can—occur in real-time[2].?Consumers want it, and you can help make it a reality. By partnering with Visa Direct, financial institutions can gain a competitive edge, stay ahead of the changing money movement landscape and enjoy the opportunity to grow revenue by monetizing payouts.?

For more information on Visa Direct click HERE

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[1] Aite Group and Visa Inc. Banking and Brokerage Consumer Study (1,957 U.S. consumers), April 2019 – March 2020

[2] Actual fund availability depends on receiving financial institution and region.