While checks may seem archaic, they’re still widely used for payments like class action settlements, refunds, or investment disbursements (at least in America). It’s more efficient and environmentally friendly to use other modern payments methods, but the behind-the-scenes orchestration presents challenges for incumbents.
BNY Mellon just launched a new payment platform called Vaia – in partnership with fintech Verituity – to help its clients move away from paper checks in favor of real-time payments options. Offering a range of payment choices has “historically been time and cost prohibitive” for businesses, but Vaia “is doing the heavy lifting,” a spokesperson told Insights Distilled.
Verituity helps verify the identities of the payer and payee, as well as the chosen payments method (including Zelle, same-day ACH, and, eventually, PayPal or Venmo), so that BNY Mellon can help clients execute more flexible payments.
Verituity first started working with BNY Mellon through its accelerator program earlier this year and it lets BNY Mellon “take a zero-trust approach to payment verification, establishing that validation step quickly enough so that it merges seamlessly with the transaction,” the spokesperson said.
BNY Mellon currently processes more than 300 million check payments per year and it’s not the only large bank working to cut down on that old-school modality: JPMorgan is piloting a new platform to help eliminate the need for rental checks.