Digital disbursement solutions have helped aid expansion of the sharing and gig economies. Now, these solutions are being put to use in other unexpected markets, including the now-legalized sports betting market, inside correctional facilities and on the high seas.
The new Disbursements Tracker™ looks at how these solutions are creating opportunities in new ecosystems, and how the rise of real-time payment systems around globe could lead to further adoption.
Around the World of Disbursements
A recent Supreme Court decision made waves in the gambling market by essentially legalizing sports betting. At the same time, the ruling has big implications for disbursement solutions.
On sports betting platforms, payouts typically take between two to three days to deposit into a winner’s bank account. This delay creates friction for gamblers who want their winnings delivered quickly, and could cause gamblers to reconsider whether to continue using a gambling platform. Using payment cards for payouts could ease that payment friction, while driving spend on the casino floor.
In addition to sports betting, disbursements are being put to use in prison environments. In several global penitentiaries, prisoners are using digital bank accounts to pay for commissary items, or to send funds home to loved ones. The solutions are currently being tested in correctional facilities in the U.K. and China.
Meanwhile, in the Philippines, a local bank launched a new disbursement solution of its own. UCPB released its InstaPay feature, which enables clients to transfer funds to other bank accounts in the Philippines in real time using UCPB Connect, the bank’s online portal. The solution could spare bank recipients from having to transact physically at a bank branch.
Deep Dive: Escrow Solutions Disburse Trust to Digital Marketplaces
Some online marketplaces are still old-fashioned about the final offline transaction. On Craigslist, for example, two parties involved in a sale must meet in person to exchange money for goods. Using an escrow solution, however, could reduce risk and improve how both sides trust the process. This month’s Tracker includes a Deep Dive that looks at how escrow solutions could improve trust for big-ticket eCommerce transactions, as well as for services in the gig economy.
Disbursements Take Side Hustle Out to Sea
On boat-sharing platforms, trust is of the essence. Boat owners must be willing to trust that renters will deliver payments as promised, and that they will treat the owners’ expensive investments responsibly. Renters, on the other hand, want assurance that they are getting the vessels they were promised. In this month’s feature story, Bryan Petro, chief operating officer of boat-sharing platform GetMyBoat, discussed how disbursements enable boat owners to earn money off their costly investments, while helping both sides of a transaction to more easily trust the process.
About the Tracker