Coming September 2016, speedier bank transfers will begin to become a reality. To understand the potential impacts of this new development in the ACH network, we’re doing a three-part series looking at how different parties stand to benefit from the implementation of same day bank transfers.
In this post, we’ll focus on the benefits to consumers—those of us paying utility bills and managing our finances the best we can. To catch you up, we’ve done a deep dive into understanding the ACH network and Same Day ACH.
To understand how Same Day ACH could impact consumers read on…
The benefits of implementing faster payments may be more quantifiable for business, but consumers also stand to benefit from the innovations built atop of a faster, more affordable, and ubiquitous bank transfer, like Same Day ACH.
Examples of Same Day ACH benefits to consumers
Fast, affordable emergency payments.Sure, paying back a friend for coffee in a timely fashion is cool, but, in the instance of an emergency, a reliable, fast, and affordable way to transfer funds can help put people’s lives back on track. For example, consider natural disasters. Here, insurers, governments, and nonprofits need a cost-effective way to deliver funds to victims, first responders, and more.
Pay bills, like landlords or utility companies, in the last minute. Sometimes we forget to make a payment, sometimes we just don’t have the cash yet to make the payment a few days ahead of the due date. Late payments can be costly, even locking some consumers in vicious and inescapable cycles of debt. Same Day ACH can provide consumers greater control and options when it comes to managing their bank account balances (or forgetfulness), helping them make payments on time.
Take action quicker and cheaper.Legacy stock trading platforms, real estate deals, and wealth management firms are known for using wire to instantly move millions between institutions, but now that action has come to the consumer. Today, an onslaught of internet-connected devices, real-time APIs, and fintech platforms help consumers enjoy the same tools and advantages for managing personal wealth.
They’ve also highlighted the need for faster, more accessible, and lower volume bank transfers. Imagine the additional value that could be unlocked by crowdfunding platforms. Imagine the value if they were to have access to affordable and faster real-time payments.
The proverbial question:
We finished our last post similarly—how will providers offer this new functionality? What will the costs to consumers be? Will consumers get access to this functionality or simply benefit from the businesses that utilize it in their systems? Only time will tell…
At Dwolla, we think the true value found is faster payments is not speed, but rather the value provided to businesses and consumers. As providers of the nation’s most dynamic on-ramp to the ACH network, our flexible API, infrastructure, and expertise in bank transfers offer a robust platform.
If you’re interested in Same Day ACH (or standard ACH) we’d like to hear from you.