Fintech startup iWallet’s businesses payment app has become one of the first processing apps to integrate FedNow, Federal Reserve’s new real-time payment system, for mobile check deposit services.
The real-time mobile check deposit provides businesses access to instant payment technology.
All iWallet merchants making mobile remote check deposits will reportedly have the ability to cash checks with field techs, make refunds and use funds deposited instantly through FedNow.
“Traditionally merchants pay a processing fee to use credit cards and businesses aren’t able to have their technicians make remote check deposits in the field,” Jim Kolchin, iWallet Founder and CEO, said in a release. “As an early adopter of FedNow, iWallet will be offering real-time paper check deposits free to qualified businesses.”
Leaders said the check writer will get a text message from their bank in real-time with a six-digit code to confirm the transaction. This number will be used to verify the check transaction and will allow it to instantly process. Merchants will get a real time notification from the iWallet app via FedNow confirming that funds have been received by their bank.
According to iWallet, additional merchant benefits for techs using iWallet’s mobile check deposits in the field include doing away with check stop payments, since a stop payment can only be issued before payment is processed.
The new real-time deposit capability for businesses will be at full capacity once all banks join FedNow, which can take some time, the company added.
With FedNow, iWallet merchants will reportedly be able to use funds instantly from mobile check deposits in the field even on holidays and weekends when banks are closed.