Global Digital Disbursements for Commercial Customers
Bank of America has rolled out Global Digital Disbursements for commercial clients with deposit accounts in the bank’s Canadian branches. This innovative solution facilitates multiple business-to-consumer payments and consumer-to-business collections, offering a cost-effective and seamless payment method to businesses seeking alternatives to checks or cash.
The Request for Pay feature enables businesses to send invoices via text and email messages, including a clickable link that allows customers to pay their dues promptly. This enhances payment efficiency without the need to manage sensitive financial data from payees.
Use cases include insurance companies settling claims faster, tech firms paying numerous freelance workers efficiently, and streamlining various business operations by eliminating the need for traditional payments methods.
Leslie Konecny, head of product for global transaction services in Canada at Bank of America, noted, “Global Digital Disbursements provides our clients with fast digital payments and request-for-payment options to consumers in Canada. The transactions carry enhanced ISO remittance data, ensuring secure and efficient transfers without the risk of storing sensitive banking details.”
Instant Payments Are Gaining Momentum
The demand for quicker and more convenient financial transactions is on the rise among businesses and consumers. Faster payments can significantly benefit companies by improving cash flow, reducing the time between invoicing and receiving funds, and optimizing overall cash management.
For individuals, faster payment solutions mean swifter settlement times, better cash flow control, and a smoother customer experience.
According to a Javelin Strategy & Research report by Albert Bodine, Director of Commercial and Enterprise Payments, global adoption of instant payments is highest in Brazil, China, and India. In 2022, India’s Unified Payment Interface (UPI) accounted for 40% of all worldwide instant payment volumes.
In contrast, Germany, the United Kingdom, and the United States have shown slower growth in instant payment adoption, with Germany lagging behind at less than 3% on real-time rails.
