Bank of America has rolled out its new solution, Global Digital Disbursements, to its commercial clients holding deposit accounts at the bank’s branch in Canada.
The company is providing the solution through Interac e-Transfer, a money movement solution offered by the Canadian interbank network Interac.
The Global Digital Disbursements solution facilitates the processing of multiple B2C payments and C2B collections, with the person’s email address or mobile phone number as an identifier.
The new solution is both a cost-effective and customer-friendly payment option for companies seeking to replace cash or cheque payments, said the US lender.
Bank of America Global Transaction Services (GTS) Canada product head Leslie Konecny said: “We are pleased to be the first U.S. bank in Canada to offer both C2B Request for Pay and B2C payment flows through this digital solution.
“This is a milestone for Bank of America in Canada, as we continue to meet the evolving digital needs of our multinational clients, providing them with enhanced speed, flexibility and transparency to manage their payment and receipt flows.”
Bank of America offers a similar solution in the US through the digital payments network Zelle and in 90 other countries, through the global financial technology company PayPal.
The bank said that the use case for Global Digital Disbursements varies by industry and includes insurance companies that use its speed to make claim settlements.
Its alias solution will help companies in the technology field to pay freelance employees or temporary workers, without the need to manage financial information.
Also, the solution helps non-profits to send financial relief electronically in emergency situations to people who may be physically displaced.
Bank of America said that Canada is the first market where the Request for Pay feature will also be offered with Global Digital Disbursements solution.
The Request for Pay enables a company to send invoices to customers through text or email along with a link to pay the amount, driving faster receipt of payment, said the company.
Bank of America GTS Canada head Maureen Jarvis said: “The launch of Global Digital Disbursements in Canada follows the bank’s 75th anniversary in the country.
“This much-anticipated launch speaks to our commitment to local innovations in financial services that help our clients realise cost savings and a competitive edge.”