Walmart and Fiserv Partner for Instant Bank Payments

In a significant shift for online payments, Walmart is teaming up with Fiserv to allow shoppers to pay directly from their bank accounts instantly. This new feature, set to launch next year, will give consumers an alternative to traditional card networks, which have been a point of contention for retailers due to high interchange fees.

Real-Time Payments Integration

According to FinRate, Walmart will leverage Fiserv’s NOW Network, which integrates with The Clearing House’s Real Time Payments (RTP) system and the Federal Reserve’s FedNow. By doing so, Walmart hopes to streamline the payment process, making transactions faster and more transparent for both customers and retailers.

Previously, Walmart ventured into pay-by-bank with Walmart Pay, but the Automated Clearing House (ACH) system used resulted in transactions taking up to three days to process. With the integration of real-time payments, customers can expect instantaneous payment confirmations, allowing for easier budgeting and financial management.

Solving the “Phantom Payment” Problem

Jamie Henry, Walmart’s VP of Emerging Payments, explained to FinRate how this new system solves what he calls the “phantom payment” problem. “When the transaction processes as a real-time payment, customers get immediate access to see that payment come through. I see it hit my account, and I can properly budget,” Henry said. The real-time nature of these payments eliminates the uncertainty of pending transactions that typically take a few days to finalize.

The Growing Role of FedNow and RTP

The launch of this feature also marks a milestone for the maturity of FedNow and RTP systems. As more banks connect to these platforms, large retailers like Walmart are starting to take notice. The result? A growing demand for faster, more efficient payment solutions that benefit both customers and businesses.

Matt Wilcox, head of digital payments at Fiserv, added that one of the challenges is getting different payment networks to communicate with one another.

Conclusion

With this new payment method, Walmart is not only offering shoppers more convenience but also taking a significant step in the evolution of real-time digital payments. As the retail industry continues to push for alternatives to card networks, this move signals a shift towards faster, more efficient online transactions.