BNY to Manage U.S. Department of the Treasury's Largest Prepaid Debit Card Program for Federal Benefits - Direct Express®

Rhea-AI Summary

BNY (NYSE: BK) has been selected by the U.S. Department of the Treasury's Bureau of the Fiscal Service as the financial agent for the Direct Express® prepaid debit card program. The 5-year agreement starts January 3, 2025, serving approximately 3.4 million Americans who receive federal benefits. BNY was chosen for its comprehensive customer service options, including online/digital funds access, bill pay, cardless ATM access, and omni-channel customer support. Mastercard® will continue as the payment network provider, alongside partners Galileo, MoCaFi, Senture, Sunrise Banks, and Ubiquity.

Positive

• Secured 5-year government contract for major federal benefits program
• Access to 3.4 million federal benefit recipients as customers
• Partnership with established payment network Mastercard

Negative

• None.

News Market Reaction

+1.30%

1 alert

+1.30% News Effect

On the day this news was published, BK gained 1.30%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

NEW YORK, Nov. 21, 2024 /PRNewswire/ -- The Bank of New York Mellon Corporation ("BNY") (NYSE: BK), a global financial services company, has been selected by the U.S. Department of the Treasury's Bureau of the Fiscal Service ("Fiscal Service") as the financial agent for the Direct Express® prepaid debit card program. The 5-year agreement begins on January 3, 2025.

The Direct Express® prepaid debit card provides secure, easy access to federal benefit payments for approximately 3.4 million Americans¹. After evaluating proposals from multiple financial institutions, Fiscal Service selected BNY due to the expansive suite of customer service options that will better target Treasury's unique customer base and enhance the cardholder experience to include: online/digital funds access, bill pay, cardless ATM access, chat and text (omni-channel) customer service, online dispute filing, in-person authentication options, and more.

With a strong focus on customer experience and an expansive suite of services tailored to the program's customer base, BNY will further advance electronic payments, including contactless capabilities, money movement, bill pay, emergency access to funds, and more.

"We're honored to be appointed as the financial agent for the Direct Express program, a decision which speaks to BNY's legacy serving clients and communities throughout the financial ecosystem," said Jennifer Barker, Global Head of Treasury Services and Depositary Receipts, BNY. "Drawing on our leading platform capabilities, we look forward to advancing the program's goal of providing high-quality financial services to individuals and communities throughout the U.S."

Mastercard® will serve as the program's payment network, a role it has played since Direct Express®' inception in 2008. Additional providers include Galileo Financial Technologies, LLC ("Galileo"), Mobility Capital Finance, Inc. ("MoCaFi"), Senture LLC ("Senture"), Sunrise Banks, N.A. ("Sunrise"), and Ubiquity Global Services, Inc. ("Ubiquity").

Media Contacts

Anneliese Diedrichs
Anneliese.diedrichs@bny.com
+44 7930 135 524

About BNY

BNY is a global financial services company that helps make money work for the world – managing it, moving it and keeping it safe. For 240 years BNY has partnered alongside clients, putting its expertise and platforms to work to help them achieve their ambitions. Today BNY helps over 90% of Fortune 100 companies and nearly all the top 100 banks globally to access the money they need. BNY supports governments in funding local projects and works with over 90% of the top 100 pension plans to safeguard investments for millions of individuals, and so much more. As of September 30, 2024, BNY oversees $52.1 trillion in assets under custody and/or administration and $2.1 trillion in assets under management.

BNY is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Headquartered in New York City, BNY employs over 50,000 people globally and has been named among Fortune's World's Most Admired Companies and Fast Company's Best Workplaces for Innovators. Additional information is available on www.bny.com. Follow on LinkedIn or visit the BNY Newsroom for the latest company news.

¹ Source: Direct Express Program, URL: https://www.usdirectexpress.com/

 

View original content:https://www.prnewswire.com/news-releases/bny-to-manage-us-department-of-the-treasurys-largest-prepaid-debit-card-program-for-federal-benefits---direct-express-302312664.html

SOURCE BNY

FAQ

When does BNY (BK) start managing the Direct Express program?

BNY will begin managing the Direct Express program on January 3, 2025, under a 5-year agreement.

How many Americans use the Direct Express program managed by BNY (BK)?

The Direct Express program serves approximately 3.4 million Americans who receive federal benefit payments.

What services will BNY (BK) provide for Direct Express cardholders?

BNY will provide online/digital funds access, bill pay, cardless ATM access, chat and text customer service, online dispute filing, and in-person authentication options.