Visa has stepped up its efforts around instant payments, moving to make funds transferred to US bank accounts via Visa Direct available within one minute or less.
The initiative will start in April 2025 and be made available to consumers, businesses and government institutions using Visa Direct to deposit funds into bank accounts linked to eligible debit cards.
This significantly expands the coverage of instant payments in the US due to Visa Direct reaching 99% of bank accounts across the country, which can subsequently be connected to 100 billion global endpoints across cards, accounts and digital wallets.
Jim Filice, VP, Head of Real-time Payments, Visa Direct, said: “Today, Visa Direct processes billions of real-time transactions in the US, across 50+ use cases, making it a preferred choice for consumers when receiving money from businesses or moving money between their accounts.
“This change underscores Visa’s commitment to accelerating real-time payments. 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.”
Visa asserts that the update will open ‘new avenues’ for businesses and governments to grow by enhancing operational efficiency, delivering better customer experience and fostering client trust.
The development has been welcomed by the US Faster Payments Council (FPC), a trade body working to develop faster and instant payments in the US. The association’s Executive Director and CEO, David Dwumah, describes Visa’s latest update as a ‘significant step forward’.
“Upgrading the US payment system is essential for secure, near-immediate funds availability,” he said. “The FPC promotes diverse perspectives and collaboration to address barriers to faster payments. Visa’s initiative sets an exemplary model for financial institutions to meet the demands for speed and efficiency.”
In a separate update, the FPC has also highlighted the role digital wallets are playing in accelerating faster payments in the US. The association views digital wallets as a ‘cornerstone of the future in US financial technology’ which will play a role in processing digital assets like tokenised currencies, deposits and securities.
