The Time is ‘Now’ for Funds Transfers Say BBVA Compass, Dwolla (April 13, 2015)
The momentum around faster payments continues to build with BBVA Compass becoming the largest financial institution to use the Dwolla platform, which eliminates the customary two- to five-day wait associated with ACH transfers. The partnership enables BBVA Compass customers to instantly send and receive funds using FiSync, Dwolla’s secure payments protocol for financial institutions.
The launch of the funds transfer service also marks the debut of FiSync’s authentication and tokenization technology, which eliminates the need for account holders to provide sensitive bank account information or credentials to Dwolla or any other party with which it transacts. Houston-based BBVA Compass and Des Moines, Iowa-based Dwolla jointly developed the security process and BBVA Compass suggests the real-time transfers will be useful for consumers, startups, enterprise companies and small businesses. The companies plan to roll out additional features and updates in coming months.
Speed of settlement for funds transfers is likely to be a metric bank customers focus on as they expect instant gratification in all aspects of their lives, according to Nick Holland, head of payments, Javelin Strategy & Research. “If a consumer can do his weekly grocery shopping online and have them delivered to his home within an hour, he’s likely to wonder why it should it take days for funds to go from one bank account to another,” Holland tells Paybefore. “With real-time transfers as a key means of standing apart from the pack, BBVA and Dwolla could be successful in demonstrating the value proposition for faster payments and instrumental in moving the needle on their adoption in the U.S.”
Speeding up payments has come to the forefront of discussions in the U.S. and Europe. NACHA in March said it’s studying the costs and potential transaction volume for same-day ACH and plans to eventually seek a vote from its members on a proposal to adopt same-day ACH transfers. Meanwhile, in Europe the Euro Retail Payments Board (ERPB), a group chaired by the European Central Bank (ECB), hastened its efforts on the topics of instant payments in euros, P2P mobile payments and contactless payments.
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