Atlanta-based KyckGlobal is working with Visa to boost the use of “push payments” to businesses. Push payments, which represent a growing market, typically bypass banks by sending payments directly to individuals or businesses.
Donald Boeding, KyckGlobal board member, said these "real-time payments are a $10 trillion opportunity in the United States." He added, in a prepared statement: "The vast majority of that opportunity lies in funds disbursements by businesses.”
KyckGlobal already offers a “gig worker funds disbursement solution,” which was announced more than a year ago. As previously reported, the platform addresses such financial processing areas as a Form 1099-MISC, an IRS form used for nonemployee payments. The company’s push payment launch was powered by an $8 million funding round led by angel investors at TechOperators.
Visa Direct is a push payments solution that targets consumers and small businesses, enabling financial institutions (FIs) to transfer funds to customers’ accounts in real time. KyckGlobal said its work with Visa will expand the use cases for push payments “well beyond person-to-person payments.”
Visa envisions billions of transactions moving to these faster payment systems.
KyckGlobal said that “the growing popularity of person-to-person (P2P) payments has fueled a growing interest in the availability of push payments for U.S. businesses.” The company added that “unlike traditional debit transfers, push payments do not require bank routing or account numbers, and offer real-time money movement at a significantly lower cost.”
KyckGlobal noted that its cloud-based platform is now being used for such things as specialty consumer lending, insurance claims and incentive programs. The company said its platform offers an “integrated” setup for payment, settlement, customer service and IRS compliance. In addition, KyckGlobal compiles digital W9s, contractor payments and annual 1099 generation.
The rise of KyckGlobal is an outgrowth of growing investor interest in the FinTech sector.