Walmart to Launch Instant Bank Payments, Bypassing Card Networks
Hey Payment Fanatic!
Walmart is upgrading its pay-by-bank option for online shopping, offering instant transfers that bypass traditional card networks like Visa and Mastercard. Currently, payments through Walmart Pay can take up to three days to process, but the new system will provide instant transaction updates for customers and Walmart alike.
This upgrade benefits customers with low balances by avoiding pending transactions, reducing the risk of overdraft fees, says Jamie Henry, Walmart’s VP of Emerging Payments. Instant payments give users immediate control over their budgets.
As frustration with card fees grows, Walmart’s move could push more customers toward bank transfers, especially since many merchants pass card fees to consumers. Though Walmart hasn’t heavily promoted pay-by-bank, adoption has exceeded expectations, Henry noted.
Launching in 2025, the new system will run on Fiserv’s NOW Network, which integrates with real-time payment systems like The Clearing House and FedNow, aiming for widespread bank connectivity.
Cheers,
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INSIGHTS
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GOLDEN NUGGET
➡️ How do Network Tokens work? And why are they so fundamentally beneficial?
Let's dive in:
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Using Network Tokens ensures that stolen data remains unusable, mitigating the impact of malware, data breaches, and phishing attacks.
This proactive approach significantly mitigates the potential impact of security breaches, safeguarding both the organization and its customers from the detrimental consequences of fraud.
Furthermore, embracing Network Tokens can lead to substantial benefits in terms of regulatory compliance, particularly in regard to PCI DSS obligations.
Since, unlike with traditional payment methods, the exposure to sensitive data is minimized.
In essence, organizations can proactively fortify their defenses against fraud while simultaneously alleviating the complexities associated with PCI compliance.
𝗥𝗲𝗱𝘂𝗰𝗲 𝗜𝗻𝘃𝗼𝗹𝘂𝗻𝘁𝗮𝗿𝘆 𝗖𝗵𝘂𝗿𝗻
Beyond bolstering security, Network Tokens are best known to mitigate payment refusals.
Payment declines range from 10% up to 30%, depending on the industry, of which around 70% can be categorized as false declines.
The ambiguity of such a high percentage has been a frustration for merchants and payment managers for decades.
While some, such as Insufficient Funds, offer a very definite reason for payment refusal, the classic Do Not Honor is most often a mix of various reasons and a handed down frustration.
Network Tokens reduce number declines that fall into these -frustrating- generic categories, with the potential to increase approval rates by over 3%, since Payment Manager will also be able to focus on addressing inefficiencies in other areas.
I highly recommend reading the deep dive article for more interesting info on this topic.
Source: Yuno
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