What are digital disbursements?

The relationships that consumers have with retailers and service providers are increasingly digital, from how they communicate to how customers pay these businesses. But funds don’t strictly flow in one direction from consumers to businesses. There are times when businesses must issue payouts to their customers for reasons including rebates, refunds, account overpayments, and claims payouts.

The B2C payout process is largely built around issuing paper checks to recipients. But, forward-thinking companies are reevaluating this workflow in light of digital solutions that streamline so many other aspects of their operations—and the global pandemic is only increasing the need for accelerated digitalization. If customers can make payments on their mobile devices, for example, why can’t they receive digital payouts directly to their bank accounts or debit cards? Do businesses need to continue investing time and money in issuing paper checks when so many transactions are now digital? Isn’t there a better way?

The overall value of Digital Disbursements as a user-friendly alternative to paper checks for delivering B2C payouts and consumer demand for contactless and speedier payments is driving increased adoption. And research indicates that faster payments are something consumers are willing to pay a premium for. One study shows 20 percent of consumers are now willing to pay fees to receive disbursements such as refunds, rebates, and insurance payouts instantly.

Here are four things to know about digital disbursements:


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