Walmart is partnering with Fiserv to enable online shoppers to make direct and instant payments from their bank accounts.
According to Bloomberg, Walmart is leveraging Fiserv’s NOW Network, which integrates with The Clearing House’s Real Time Payments network and the Federal Reserve’s FedNow. This new feature, set to launch next year, will offer shoppers an alternative to traditional card networks, with which Walmart has had ongoing disputes regarding interchange fees.
Earlier this year, Walmart introduced pay-by-bank with Walmart Pay, but those transactions were processed through the Automated Clearing House, resulting in delays of about three days. With the upcoming real-time payment feature, customers will enjoy immediate visibility of their transactions. Jamie Henry, VP of emerging payments at Walmart, explained: “When the transaction processes as a real-time payment, customers get immediate access to see that payment come through. It allows for better budgeting, eliminating uncertainty about pending payments.”
This development signifies the maturation of FedNow and RTP, as a growing number of banks connect to these systems, making them appealing to major retailers. Matt Wilcox, head of digital payments at Fiserv, stated, “As an industry, we believe we need to create this connectivity. FedNow and RTP don’t necessarily talk to one another, but the NOW Network can bridge these networks, enabling functionalities like pay-by-bank.”