Bank of America Merrill Lynch (BofA Merrill) has launched digital disbursements, a payment solution that enables companies to make payments to customers digitally, eliminating the need to issue a cheque.
Payments are directly routed to the bank account of the individual payee’s choosing using either a mobile phone number or email address as the identifier. The solution leverages the technology behind person-to-person payments, a capability currently available to individual customers of BofA Merrill’s consumer business.
“Digital disbursements emerges from the rapidly evolving world of payments, in which both consumers and corporations are increasingly opting for faster, easier ways to send and receive money electronically,” said Ather Williams III, head of global payments in global transaction services (GTS).
“Through this method, customers don’t have to wait for the cheque to come in the mail and there is no need for companies to maintain sensitive personal bank account information.” The types of business-to-consumer (B2C) payments that could be supported by digital disbursements include rebates, refunds and claims payments.
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