Why used-car dealer Carvana is pushing real-time billing

Businesses, financial institutions and even consumers have been more willing to adopt real-time payments as more uses become apparent. But one subset of instant processing, Request for Payment, has been slower to gain traction.

Data company Plaid is anticipating that will change by launching its own RfP product, which is powered by Cross River Bank.

"A big missing piece in real-time payments has been pay ins, where consumers – but also businesses – want to pay for goods and services," Brian Dammier, head of payments and financial management products at Plaid, told American Banker. "It's an early ecosystem."

RfP enables businesses to request payments from a consumer or other business. The payee receives an RfP notification about the request from a bank or third party app. Upon the payee's approval, a payment is sent back to the merchant and is instantly available. RfP can run on both FedNow and The Clearing House's Real-time Payments network. And like other real-time payments, RfP transactions are irrevocable.

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Read the full article here: https://www.americanbanker.com/payments/news/carvana-bets-on-payment-tech-to-speed-up-car-sales