U.S. Bank says it has completed a pilot program which will allow instant payments to more than 800 auto dealerships and has plans to extend real-time payments to more retailers.
In an email to Automotive News on August 9th, company spokesman Todd Deutsch said, “I had to keep re-writing the release to change [the 800-dealer figure] because it kept growing as I was putting it together.”
U.S. Bank finished a pilot version of the program in June. It allows instant payments to auto dealerships after finalizing an auto loan, even during evenings and on weekends. The network includes both single-store and multiple-location retailers.
Traditional digital money transfers can take several days, especially if the transaction occurs outside of normal banking hours. U.S. Bank says the ability to have loans funded instantly through Automated Clearing House’s RTP network improves cash flow control and contract-in-transit metrics for dealerships.
Kristin Kelly, a spokeswoman for U.S. Bank, said Tuesday the company can now issue immediate payments to any dealerships that works with U.S. Bank on indirect loans and banks with a company eligible for the RTP Network.
“Dealer interest in this solution over the last few weeks has grown rapidly, with many particularly excited about finalizing their deals within moments after a consumer is approved for a loan,” U.S. Bank dealers services President John Hyatt said in a statement.
U.S. Bank introduced a similar program earlier this year which allows real-time payments to users of Lithia Motors’ digital retail platform Driveway. Customers who sell their vehicles to the group can be paid instantly, rather than waiting the accustomed 24-48 hours.
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