Digital Transactions Authoritative, insightful and timely information for payments professionals
Real-time account-to-payment payments has received a big boost as J.P. Morgan Payments adds Visa Direct to its arsenal of payment options.
The deal gives businesses using J.P. Morgan Payments’ platform an option to make payments, such as a rebate or refund, directly to a consumer’s debit card or bank account through Visa Direct’s push-to-card capabilities.
Push-to-card transfers are becoming an increasingly popular payment option, having grown more than threefold in volume between 2021 and 2023, according to from Datos Insights. That growth is primarily organic, as opposed to a displacement of existing payment options, such as paying by check, says Erika Baumann, director for commercial banking and payments and healthcare payments at Dato Insights, a Boston-based consulting firm.
“Businesses want choice when it comes to payment options, and being able to push a payment to a debit card on file is a great option because it is a fast and simple solution,” Bauman says. “In today’s environment, having this kind of payment option is an important long-term play for banks looking to offer end-to-end payment solutions, of which push-to-card is one.”
The addition of the near real-time Visa Direct service to J.P. Morgan Payments’ platform fits into J.P. Morgan’s money-movement strategy, the company says.
“This is an important collaboration for our clients and our business. Visa Direct’s capabilities align strategically with our commitment to delivering innovative solutions to our clients,” John Skinner, co-head of treasury services for J.P. Morgan Payments, says in a statement. “By boosting our ability to deliver faster payments, we’re streamlining payment processes, enhancing liquidity management, and providing greater convenience for our customers.”
In 2023, Visa Direct processed 7.5 billion transactions globally and was used by more than 2,800 clients in more than 190 countries, according to Visa’s Web site.
J.P. Morgan Payments, which combines treasury services with trade, card, and merchant capabilities, processes more than $10 trillion in payments daily, across more than 160 countries and more than 120 currencies.
