Selling an old car? Get paid before it leaves your driveway.
A new use case of Real-Time Payment for US consumers.
Lithia Motors, an online car dealer for new and used vehicles
Launched its e-commerce driveway strategy
Consumers who sell their used cars to the dealership from their home
Can receive real-time payment, enabled by U.S. Bank
The car sales are largely done online plus an in-person inspection
Payment will be deposited in a bank account as soon as the deal is done
Even before the car leaves the driveway
The fast payment would give Luthia a competitive edge
Normally the transaction will take days to settle
This is an application of the Real Time Payment - RTP
The Background:
RTP Network was launched in 2017 by The Clearing House
which is owned by a group of banks, including U.S. Bank
RTP enables various payments such as B2B and P2P
The pandemic clearly accelerated the adoption of RTP (see graph)
The Fed will introduce its own real-time payments service next year
Which will further advance payment innovation and competition
Graph source: The Clearing House
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