US Bank says it has completed a pilot program that enable instant payments to over 800 car dealerships and plans to expand real-time payments to more retailers.

In an email to Automotive News on Aug. 9, company spokesman Todd Deutsch said, “I had to keep rewriting the version to change [the 800-dealer figure] because it kept growing as I put it in place.

US Bank completed a pilot version of the program in June. It allows instant payments to auto dealers after finalizing an auto loan, even on evenings and weekends. The network includes both single-store and multi-location retailers.

Traditional digital money transfers can take several days, especially if the transaction takes place outside normal banking hours. US Bank says the ability to have loans funded instantly through Automated Clearing House’s RTP network improves cash flow control and in-transit contract metrics for dealers.

US Bank spokeswoman Kristin Kelly said on Tuesday that the company can now issue immediate payments to all dealers who work with US Bank on indirect loans and to banks with a corporation. eligible for the RTP network.

“Dealer interest in this solution over the past few weeks has grown rapidly, with many particularly excited to finalize their transactions moments after a consumer approves a loan,” said U.S. Bank’s President of Dealer Services John Hyatt said in a statement.

The American bank has introduced a similar program earlier this year which enables real-time payments to users of Lithia Motors’ Driveway digital retail platform. Customers who sell their vehicles to the group can be paid instantly, rather than waiting the usual 24-48 hours.


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