Visa Direct to Enable Delivery of Money Within 1 Minute
Visa will begin enabling faster delivery of money with Visa Direct, making funds transferred to U.S. bank accounts available within one minute.
This capability will begin in April 2025, allowing consumers, businesses and governments to use Visa Direct to deposit money to bank accounts linked to eligible debit cards in real time, the company said in a Thursday (Dec. 12) press release.
Visa Direct processes billions of real-time transactions in the United States, Jim Filice, vice president and head of real-time payments at Visa Direct, said in the release.
“This change underscores Visa’s commitment to accelerating real-time payments,” Filice said. “At Visa, we are constantly striving to innovate and provide the best possible money movement experiences, and this update will significantly enhance the speed and convenience, while maintaining strong security standards.”
The faster delivery of funds will apply to use cases like splitting a bill with friends, moving money between accounts, receiving an insurance claim payout, accessing earned wages, disbursing government benefits, processing healthcare payments and handling tips, according to the release.
The change will help organizations enhance operational efficiency, improve customers’ experiences and bolster trust among clients, per the release.
Visa’s move is a “significant step forward” in the development of faster payments, U.S. Faster Payments Council Executive Director and CEO Reed Luhtanen said in the release.
Sixty-eight percent of consumers would choose instant payments for all types of disbursements, when available, according to the PYMNTS Intelligence report “Disbursements Satisfaction Report 2023: Instant Payments Reach an Inflection Point.”
The report also found that 41% of consumers would be willing to pay a fee to receive this method of payment.
Visa reported in October that Visa Direct transactions grew by 38% in its fiscal fourth quarter to 2.8 billion and that the year’s total number of Visa Direct transactions reached almost 10 billion.
Real-time payments enabled by Visa Direct offer end users financial flexibility, Filice said in a June press release.
“Consumers expect a frictionless money movement experience,” he said.
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