Online Resources Corp. is working with Western Union Co. to offer an expedited payment service to online banking users, the companies are expected to announce Monday.
Both companies currently offer expedited payment services individually to banks and other financial institutions. Their partnership combines their networks to offer access to hundreds of merchants where on-time payments are critical, said David Munger, vice president of product management for Online Resources, said in an interview.
"Potential fee revenue is declining for financial institutions today," Munger said. Because expedited payments can be offered to consumers at a premium charge, they represent an additional revenue stream to banks, Munger said.
Munger said consumers are particularly interested in using expedited payments services, where they can pay a merchant on the same day for things like mortgages and credit cards, because penalties for late payments in these cases are usually high.
Separately, Western Union is also announcing Monday a partnership with 3i Infotech Ltd., of Edison, N.J., for electronic billing and payment services. The partnership will combine Western Union's payment services with 3i's eBilling and lockbox services for corporate users.
The partnership will allow customers to access eBills, integrate them with their revenue chain, and combine these functions with lockbox services, among other things, Western Union said.
Online Resources is based in Chantilly, Va. Western Union Co. is in Englewood, Colo.
