Discover Financial Services is readying a way for consumers to make everyday purchases like gasoline and groceries directly from their bank accounts using technology from the fintech Buy It Mobility Networks.
The companies are expected to release details later this week, according to a report Tuesday in The
The program will leverage Automated Clearing House payments through the New York-based fintech, and Discover will provide point-of-sale connections to millions of merchants in its network, according to attendees at the Merchant Advisory Group conference in Atlanta on Tuesday where Discover executives discussed the plan.
The move could drive more everyday transactions to checking accounts, tightening the connection between banks and consumers.
For merchants, lowering transaction costs by using ACH creates opportunities to offer discounts and loyalty perks, according to Steve Mott, a payments industry consultant and owner of BetterBuyDesign, who attended the MAG presentation.
“The concept uses Discover’s rails as a means of doing guaranteed ACH, and enables merchants to use any acquirer they want,” Mott said.
Buy It Mobility already provides its service directly to fuel retailers like Shell and Phillips 66, where customers paying directly from their bank accounts earn discounts of about 24 cents a gallon.
Discover did not respond to inquiries by the time of publication. Writing in American Banker last year, Buy It Mobility CEO Adam Frisch said ACH is an
