Adaptive Payments is entering an already crowded mobile-payment acceptance market with a device that enables merchants to accept PIN-debit transactions on smartphones using a method similar to the company’s e-commerce operation. The Shazam electronic funds transfer network will make the magnetic stripe reader available in the next two months to its nearly 1,500 community financial institutions as well as its merchant customers. Shazam made a strategic investment in Adaptive earlier this year (see story).
August 31, 2011 09:00 AM Eastern Daylight Time
MINNEAPOLIS--(BUSINESS WIRE)--U.S. Bank announced today the implementation of Secure Vault Payments (SVP), a new consumer online payment option, for the University of Wisconsin-Stout, Wisconsin’s Polytechnic University. UW-Stout students and parents are able to initiate online tuition payments with SVP using a consumer online bank account at U.S. Bank or any Secure Vault Payment-enabled financial institution.
“U.S. Bank is committed to providing merchants and billers with innovative solutions to increase the efficiency of their payment collection and to enhance their customers’ satisfaction”
With Secure Vault Payments, students or their parents initiate payments on a college or university web site and are automatically redirected to their own financial institution’s online banking platform to select which account they wish to use for payment. They are then returned to the school’s site, where they receive payment confirmation. Financial institutions authenticate the payer and immediately withdraw funds from the payer’s account and transfer funds to the school’s account the next business day.
The UW-Stout Business Services staff received positive feedback from students and parents who have already used Secure Vault Payments. Students and parents said they liked using SVP because they were able to pay directly from their own bank account, there were no convenience fees charged and they found it easy to make their payment.
In addition to providing students and parents a safe and easy online payment choice, Secure Vault Payments provides UW-Stout guaranteed payments and access to funds the next business day without storing payer financial information. The school expects SVP will reduce resource time and payment processing costs for tuition payments.
UW-Stout implemented Secure Vault Payments quickly and easily through its payment system provider, TouchNet Information Systems, Inc., which was already integrated into the SVP network. This made it possible for UW-Stout to offer SVP with minimal development and resources.
“U.S. Bank is committed to providing merchants and billers with innovative solutions to increase the efficiency of their payment collection and to enhance their customers’ satisfaction,” said Eric Lim, vice president and senior product manager for U.S. Bank Treasury Management. “We believe Secure Vault Payments provides compelling benefits as an online consumer payment option for many other industries including government, utilities and non-profits. We plan on launching Secure Vault Payments with other organizations later this year.”
Secure Vault Payments was developed by NACHA — The Electronic Payments Association in an effort to reduce paper checks and increase use of the ACH Network. The Secure Vault Payments technology that transfers users between the biller’s site and the financial institution’s site is provided by eWise, the exclusive network provider for Secure Vault Payments.
For a list of financial institutions, merchants and billers offering Secure Vault Payments as a consumer online payment option, visitwww.securevaultpayments.org.
About NACHA — The Electronic Payments Association
NACHA manages the development, administration, and governance of the ACH Network, the backbone for the electronic movement of money and data. The ACH Network serves as a safe, secure, reliable network for direct consumer, business, and government payments, and annually facilitates billions of payments such as Direct Deposit and Direct Payment. Utilized by all types of financial institutions, the ACH Network is governed by the NACHA Operating Rules, a set of fair and equitable rules that guide risk management and create certainty for all participants. As a not-for-profit association, NACHA represents nearly 11,000 financial institutions via 17 regional payments associations and direct membership. Through its industry councils and forums, NACHA brings together payments system stakeholders to enable innovation that strengthens the industry with creative payment solutions. To learn more, visitwww.nacha.org, www.electronicpayments.org and www.payitgreen.org.
About U.S. Bank
U.S. Bancorp (NYSE: USB), with $321 billion in assets as of June 30, 2011, is the parent company of U.S. Bank, the fifth largest commercial bank in the United States. The company operates 3,086 banking offices in 25 states and 5,086 ATMs and provides a comprehensive line of banking, brokerage, insurance, investment, mortgage, trust and payment services products to consumers, businesses and institutions. U.S. Bancorp and its employees are dedicated to improving the communities they serve, for which the company earned the 2011 Spirit of America Award, the highest honor bestowed on a company by United Way. Visit U.S. Bancorp on the web at www.usbank.com.