As the payments landscape evolves, it’s important to understand your customer/member needs when evaluating payment rail choices and settlement speed. However, one rail is not going to fulfill all the needs of all accountholders. Therefore, multiple payment rails are needed. One of these rails is Visa Direct, which offers both domestic and cross-border payments, and global ubiquity. Here, we look at 6 of the leading use cases for card-based push payments.
Account-to-Account – An account-to-account (A2A) transfer is the transfer of funds from one financial institution to the other by the same individual. This would apply to opening a new account, adding money to a brokerage account, transferring money from one account to another, loan disbursements, or cross-border transfers.
- 74% of surveyed consumers may consider switching to an FI that offers real-time transfers
- An average of 2.4 trades are missed per year due to delayed funds transfers from a consumer’s bank to their brokerage account
Cross-Border – The ability to quickly issue cross-border payments addresses many traditional challenges, such as excessive fees, language barriers, more time to process, and the inability to attach detailed remittance data to a payment.
- Suppliers wait 7 days more than average to receive payments from payers that use correspondent bank networks.
- Businesses have to wait 55% longer to receive cross-border sales payments than domestic payments
Earned Wage Access – It’s important for workers to get paid quickly so they can thrive. This provides workers with access to their paycheck when they want fast access to their earnings.
- 79% of surveyed workers would switch to an employer with real-time EWA
- 89% of survey workers would work long for an employer with real-time EWA
Gig Economy – Helps gig companies pay their workers in real-time to accounts with Visa debit cards. In addition, there are potential revenue streams from worker fees for real-time payouts.
- 66% would choose a gig company that offers real-time payments over others
- 76% would pay for faster access to their earnings on a monthly basis
Marketplaces – Marketplaces need to attract and retain sellers who want fast access to their sales revenue. Real-time payouts to sellers mean better liquidity and more satisfaction.
- 59% of surveyed sellers would switch marketplaces to access real-time payouts
- 79% of survey sellers prefer real-time payouts to debit cards backed by Visa over payouts to digital wallets or standard direct deposits
Merchant Settlement – Businesses need quick access to their sales revenue. Merchants can request real-time payouts to accounts linked to their eligible debit cards. It’s also an opportunity to develop revenue streams from merchant fees for real-time payouts.
- 81% of surveyed small businesses would pay a fee for faster settlements
- 85% of surveyed small businesses would consider changing their acquirer to get faster settlements