When it comes to accessing their money, spend funds directly into a consumer’s account. They
today’s consumer wants it now, with the push of a button. As they grow bolder with this demand, consumer requirements for speed, simplicity and choice in how they get paid could soon make push payments technology a corporate standard.
Several players in the payments space have recognized this urgent need for choice and speed, and are stepping up to help companies offer this capability. New solutions like Ingo Money’s Instant Payments platform and NACHA’s Same Day ACH initiative are offering corporations digital alternatives to paper checks for funds disbursement.Push payments in particular deliver instant, safe-to-spend funds directly into a consumer’s account.
They can be used as an instant, irreversible digital payment for any transaction that traditionally involves cash, paper check or an ACH transaction. The market for push payments is enormous, with 22 billion checks alone written each year, valued at $22 trillion according to a Federal Reserve study.
But the very fact that 22 billion checks are written every year shows that companies are still comfortable issuing paper checks. Why? History. The process and infrastructure runs deep and is familiar to everyone. So how and why will companies embrace push payments, and finally put slower payment options like the paper check out to pasture?