U.S. Bank and Driveway have collaborated to pay car sellers “immediately” with real-time payments, making Driveway one of the first online car dealerships “to pay customers over the RTP network.”
Clients selling a car on Driveway.com may now have the payment deposited “instantly” into their bank account after “a sale is complete and before the vehicle even leaves their driveway.”
Before this advancement, clients had waited 24-48 hours “to be paid via ACH or several days via physical check.”
Last year, Driveway approached U.S. Bank “to develop a payment solution that would be nearly frictionless and reduce the amount of time it took for online car sellers to receive their payment.”
U.S. Bank, a provider of real-time payments, brought the challenge to its Global Treasury Management innovation studio “to identify and test the best solution for Driveway.”
Shailesh Kotwal, Vice Chair, U.S. Bank Payment Services, stated:
“We’re proud to deliver a new RTP solution that creates a faster, safer and more convenient payment experience for Driveway and its customers. Those selling cars on Driveway.com will benefit from an instant, frictionless payment experience while Driveway will achieve greater customer satisfaction from their innovative payment process. We look forward to working with innovative companies like Driveway in every industry to find RTP solutions that deliver instant value both internally and for their customers.”
Bryan DeBoer, President & CEO of Lithia & Driveway, remarked:
“RTP’s instant-payment solution is another innovative offering providing customer optionality, transparency, and convenience in Driveway’s digital, buying-and-selling ecosystem. Our new partnership with U.S. Bank empowers Driveway to provide full and immediate payment to customers, further modernizing our personal transportation solutions for consumers wherever, whenever, and however they desire.”
How it works: “After a Driveway customer enters details about their car, they receive an instant quote.”
If the customer wants to proceed, “they receive an email invitation to provide their payment and bank details via a Driveway and U.S. Bank co-branded digital payment portal.”
Following an in-person inspection by a Driveway Valet and finalized sale, “the payment is instantly deposited into the car seller’s bank account via the RTP network.”
Real-time payments will be available “to Driveway customers following a pilot, which is underway in the Portland area now.”
With the RTP Network, the first new payments rail in the U.S. “in more than 40 years, U.S. Bank helps businesses send and receive payments instantly 24 hours a day, 365 days a year.”
U.S. Bank, which participated in the first ever payment on the RTP Network, “is one of the top senders of RTP transactions in the U.S.”
The bank is “continually developing new ways for companies to utilize real-time payments, such as a new for billers.”
For more details on this update, check here.