A better way to pay consumers: Making the move to digital disbursements

by Tammi Shapiro and Paul Diegelman, Fiserv

Sometimes life simply moves too fast for paper checks and other slower payment options. Businesses that send payments to consumers are well aware of this reality, yet nearly half of all consumer disbursements made each year– insurance claims, rewards, rebates, refunds – are still made by check, according to an Aite Group study.

Paying vast numbers of customers, workers and business partners quickly, securely and efficiently is challenging, and in many cases existing processes have evolved to fit specific needs and requirements. Payments must be accurate, be able to be tracked and reconciled, and be optimized for companies’ unique needs. The insurance industry in particular requires the ability to make multiparty payments to people with different accounts. Almost all businesses, from those in traditional industries to members of the gig economy, find it’s increasingly necessary to provide convenient, real-time business-to-consumer (B2C) payments.
Advancements in disbursement tools are opening new avenues for companies to get money to their customers, clients, business partners and employees faster and more efficiently. Using digital disbursements, companies can now send digital payments to an email address, mobile number, debit card or direct to an account. While it’s easy to see the value of providing faster, digital B2C payments to the customer, companies must also ensure transactions are cost-effective, efficient and secure.
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