Nacha, the Electronic Payments Association announced today that Secure Vault Payments (SVP) will move into full commercialization following a pilot designed to assess the feasibility of SVP.
Supported by eWise's Online Banking ePayments (OBeP) platform, financial institutions, merchants, billers, payment gateway providers, and core payment processors have embraced SVP as a payment solution.
"NACHA encourages ACH Network innovation with solutions like SVP that bring value to all participants," said Janet O. Estep, president and CEO of NACHA. "The ongoing partnership with our technology partner eWise will make this transition into commercialization seamless for the financial institutions and businesses currently offering SVP or looking to enroll."
NACHA will continue to serve as the governing body for SVP, creating, maintaining, and enforcing the use of SVP through the NACHA Operating Rules and business rules specific to SVP. eWise, as the exclusive switch operator and technology provider, will oversee all sales, marketing, and implementation activities necessary to fully develop the SVP network. Significant increases in sales and marketing activities have begun with the addition of dedicated sales and marketing teams to drive further adoption of SVP by financial institutions, merchants, and billers.
"We are pleased to have a strong pipeline of financial institutions and merchant participants who have decided to offer SVP and who will be enabled in the coming months," said Alex Grinberg, CEO, eWise.
As a pilot participant continuing on with SVP, Synovus (NYSE: SNV - News), the Columbus, Georgia-based financial services company, witnessed firsthand the benefits SVP has created for their 30-bank franchise and the myriad of online merchants and billers within their footprint. "This product gives us the opportunity to enhance the customer's e-commerce experience while addressing the challenges concerning customer privacy and security. The results we have seen thus far have been very encouraging, and we continue to vigorously promote SVP throughout our entire network of banking relationships," says Garry Hedges, director of business development.
The University of Georgia, an SVP user since April 2008, also experienced significant success with SVP. Statistics reveal that student use of SVP as a payment method has grown to nearly 16 percent among the students for whom it is available, with 41 percent of those students using it more than five times since the start of the new semester in July 2009.
"Secure Vault Payments is a great solution for us," said Lisa McCleary, bursar, University of Georgia. "SVP is a smarter electronic payment option that lowers our risk, allows us to receive money faster, and helps us keep costly and wasteful paper out of our system."