Walmart is adding a bank payment system ahead of the holiday shopping season

Walmart (WMT) is according to reports plans to introduce an upgraded payment system next year that will give shoppers the option to pay directly from their bank accounts for online purchases. This bold move could reduce fees for the retailer.

Walmart originally introduced this feature with Walmart Pay earlier this year, but these transactions typically take three days to process. With this new system, customers will receive immediate updates to their bank accounts as soon as a transaction is completed, and Walmart will receive those funds immediately.

Jamie Henry, Walmart’s vice president of emerging payments, told Bloomberg that the system is designed to help customers better budget their finances. Real-time processing allows buyers to see their payments instantly, eliminating the worry of having a “phantom payment out there” waiting for days.

That CONSUMER become balk with card processing fees and more banks are starting to implement systems for real-time payments, options like paying at the bank are becoming more and more attractive. Retailers like Walmart will benefit from this type of strategy, largely because the option bypasses those card networks.

When customers use a debit card, transactions go through networks such as Visa and Mastercardwhich charge merchants (in this case Walmart) processing fees. Not only will the upgraded system reduce taxes for Walmart, but it could also lead to lower prices for consumers in the long run. Shoppers will need to create a Walmart profile and add the new payment option, along with their bank information, to use the bank payment feature.

The announcement of the upgraded payment system coincides with Walmart’s holiday shopping planswhich arrive at the same time as Amazon’s upcoming Prime Day event.