BofA payments app for businesses handled record $500 billion by mid-year

By Lananh Nguyen

NEW YORK (Reuters) - Bank of America’s corporate clients approved a record $500 billion in payments through its CashPro app by mid-year, up almost 40% versus the same period in 2023, the company said in a statement on Thursday.

Payments on the app are projected to exceed $1 trillion this year from $802 billion last year, BofA said.

Banking giants are investing in apps that allow corporations to manage their money using tools that resemble those used by consumers on their phones and tablets.

Banks aim to capitalize on surging payments revenues worldwide, which jumped to a record in 2022, according to a McKinsey report last year. Global payments revenues rose to more than $2.2 trillion in 2022, with commercial accounts generating 53% of the total, the report showed.

"Payments are cool again," Mark Monaco, head of BofA's global payments solutions business, told Reuters in an interview earlier this year.

The lender's broader payments business processes nearly $2 trillion a day in transactions. That compares with about $10 trillion daily at JPMorgan Chase and $5 trillion for Citigroup.

(Reporting by Lananh Nguyen in New York, additional reporting by Saeed Azhar)