Even with check usage waning, US businesses still send consumers more than three billion checks annually — from insurance claims and tax refunds to financial aid and rebates, according to the Federal Reserve.
To make the paper-to-electronic evolution easier and more secure, Wells Fargo & Company’s commercial, corporate, and institutional customers will soon be able to speed up B2P (business-to-person) electronic payments with its new payment option as part of the existing Payment Manager service.
Payment Manager B2P, which is expected to roll out in early 2017, enables businesses to pay any consumer who has a US bank account without collecting or storing sensitive bank account information.
The service only requires the customers’ email address or mobile phone number and any accompanying remittance details to conduct a transaction.
Wells Fargo Treasury Management Group executive vice president and product management director Keith Theisen said: "We’re excited to bring our business customers a new product that will help them improve payment timing, maximize staff efficiency, and boost payee satisfaction."
Wells Fargo Payment Manager can be used to send B2P payments through Early Warning’s clearXchange network, and manage traditional disbursements, all in a single interface.
Businesses will be able to approve payments and transmit payment instructions for checks, Automated Clearing House (ACH) transactions, wires, commercial card, and B2P payments in one electronic file. The service also enables businesses to pay individuals in the individual’s preferred method.
Theisen said: "As our world becomes more digital, we continue to evaluate and invest in new, innovative technologies that prioritize our customers’ experience and security."
Wells Fargo is the No. 1 ACH electronic payment originator among US based financial institutions, according to NACHA – The Electronic Payments Association.
