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3 Payments Stories That Caught Our Eye

Posted by Alison Arthur on 02 Oct 2018


Payments are transforming faster than ever before. Mobile payment apps and digital wallets are gaining ground, faster payments are becoming a reality, and new technology is pushing the boundaries of what’s possible in customer payment experiences.

We keep a close eye on headlines related to the payments ecosystem. Here are three recent stories that captured our attention.

1. NACHA Expands Same Day ACH

After completing its third and final implementation phase earlier this year, NACHA voted to expand Same Day ACH’s capabilities even further by announcing three key changes. The first change expands the time window for submission of Same Day ACH transactions to the ACH network by adding an additional two hours to the existing time window. Second, the maximum dollar limit for Same Day ACH transactions will be increased to $100,000. Finally, funds will be made available more quickly for certain Same Day and next-day ACH credits, expediting deposits and disbursements for businesses and consumers. These three changes will be rolled out in 2019 and 2020.

Same Day ACH has experienced significant growth, with NACHA reporting nearly 41 million transactions in the second quarter of 2018. This represents an increase of 243 percent over the second quarter of 2017.

Learn more about Same Day ACH by clicking here.

2. Prediction: Advanced Software-Based Biometrics Will Fuel Mobile Payments Growth

A new report from Juniper Research predicts that advancements in software-based biometric authentication will help fuel the growth of mobile payments. Fingerprint sensors on mobile phones are arguably the most widely used form of biometric authentication currently in use. However, fingerprint recognition is hardware-dependent. Juniper predicts that software-based biometric authentication – such as voice, eye, and facial recognition – will become the new norm as users become more familiar with the technology. The report also predicts that use of software-based methods will more than triple over the next five years, with an estimated 1.5 billion users forecasted in 2023.

3. Card Brands are Investing in the (Digital) Future

Payment brands like Venmo, Square, and Zelle seem to be getting all the press lately. But what about the card brands that have long graced the plastic in our pockets? They’re looking ahead by investing in digital solutions that are poised to change the future of payments.

Visa recently announced an investment in Paidy Inc. Headquartered in Japan, Paidy is an instantly-issued post-pay credit service that focuses on e-commerce consumers. A user can make an online purchase simply by providing their mobile phone number and email address, which is then verified using a code sent via SMS text message. The service then gives that user the ability to settle their cumulative purchases in one monthly bill. Visa also continues to have a stake in Square, owning approximately 1% of Class A and Class B shares.

Earlier this year, Mastercard acquired Oltio to drive the change from cash transactions to digital payments in the Middle East and Africa. Mastercard’s Vocalink continues to transform the real-time payments (RTP) landscape in the US and around the world. And the company’s recent investment in Divido will help retailers offer fast and flexible financing to their customers, improving the overall checkout experience. American Express has invested in Divido as well.

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Alison Arthur Product and Content Marketing Manager Alison creates timely product marketing and thought leadership content that keeps Alacriti's community informed on the latest developments in billing and payments technology. With a background in payments and financial services, Alison specializes in composing content related to technology, security, compliance, and overall industry trends.

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