Visa and ICBA Payments to Facilitate Real-Time Money Movement for Community Banks

Visa and ICBA Payments, a subsidiary of the Independent Community Bankers of America (ICBA), have renewed their 40-year partnership and plan to expand it by providing community banks with streamlined access to the Visa Direct real-time money movement platform.

Streamlined access to Visa Direct will enable community banks to provide faster and more flexible payments experiences to their customers and clients, the companies said in a Wednesday (July 16) press release.

The companies have partnered since the founding of ICBA Payments in 1985, according to the release. Together, they work to equip community banks with modern payment tools and support to compete in the marketplace.

In the renewed partnership, ICBA Payments, which is a principal member for both credit and debit card programs, will continue its sponsored card programs with Visa that include contactless-enabled cards, tokenization for digital wallets, access to Visa’s global network, and program support like cardholder communications and marketing services, the release said.

ICBA is the 10th largest debit card issuer and 29th largest credit card issuer in the U.S., per the release.

“This renewed collaboration reflects our shared commitment to enhancing the delivery of leading-edge payment products and services that align with the mission and model of community banking,” ICBA Payments CEO Jacob Eisen said in the release.

Bill Dobbins, senior vice president and head of U.S. enablement at Visa, said in the release: “Together, we’re helping community banks deliver modern, secure financial experiences that drive economic opportunity and strengthen the neighborhoods they serve.”

Visa reported in April that Visa Direct transactions rose 28% to reach 3 billion transactions in the second quarter.

The PYMNTS Intelligence and NCR Voyix collaboration “Local Roots: How Community FIs Can Win the Digital-First Generation” found that young consumers are gravitating toward smaller financial institutions as they seek personalized service.

The report found that 52% of Gen Z and millennial consumers were contemplating a switch to community banks, and 47% were eyeing credit unions as viable alternatives.

In another recently announced partnership, ICBA Payments said in March that it teamed up with Mastercard to help community banks modernize their card programs and offer enhanced payment services.