Bank of America Merrill Lynch has launched a new payment solution that allows the companies to make payments to their customers digitally, eliminating the need to issue a check.
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The solution, known as Digital Disbursements, uses the technology behind person-to-person payments, a capability currently available to individual customers of Bank of America’s consumer business.
The payments are directly routed to the bank account of the individual payee’s choosing using either a mobile phone number or email address as the identifier.
Digital Disbursements supports business-to-consumer payment types, including rebates, refunds and claims payments. Initially, the payment solution will be introduced to clients making payments in the US.
Ather Williams III, head of Global Payments in Global Transaction Services (GTS), said: "Digital Disbursements emerges from the rapidly evolving world of payments, in which both consumers and corporations are increasingly opting for faster, easier ways to send and receive money electronically.
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By GlobalData"Through this method, customers don’t have to wait for the check to come in the mail and there is no need for companies to maintain sensitive personal bank account information."
