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Note: First large bank to offer online payments through NACHA's Secure Vault System.
U.S. Bank ($291 billion in assets) has joined a bank-and-NACHA-led online payment network called Secure Vault Payments (SVP) that uses the ACH network to process online payments. Mary Burchette, senior vice president of treasury management product management at U.S. Bank, who spoke with us this afternoon about this initiative, was too polite to call it a potential PayPal killer. "It's a payment alternative that's offered by banks rather than companies like PayPal," she notes. "I don't think it's going to eliminate PayPal but for certain consumers and businesses, it's an alternative that will resonate with them," she says.
Under SVP, participating merchants will have a Secure Vault logo on their checkout page, next to Visa, MasterCard, PayPal, BillMeLater, and whatever other payment options the merchant offers. Consumers that click on the Secure Vault logo will be immediately redirected to their bank's online banking page, login with their normal...