The partnership enables instant payouts instead of using checks or ACH to provide payments to consumers, employees and businesses.
“These methods are cumbersome, costly, and difficult to administer,” said Payouts Network CEO Keith Smith. “Our highly-scalable platform simplifies the complexity associated with traditional payment methods by enabling businesses to send payouts that are instantly or programmatically deposited into the account of the recipient’s choice.”
Using Payouts Network’s Instant Payouts solution gives Priority Commercial Payments the opportunity to offer its restaurant merchants a way to payout tips digitally to employees. This not only keeps employees happy, but reduces overall cash management.
“An important point is the safety of the restaurant employees and the large amount of cash they typically leave with late at night,” said Cindy O'Neill, president of Priority Commercial Payments. “By digitizing the money from the restaurant to the employee’s bank account, it greatly reduces the risk of loss due to theft or misplacement.”
Instant Payouts will also give Priority Commercial Payments the ability to quickly return security deposits to short-term renters.
“Typically, it can take up to 17 days for renters to get deposits back,” O’Neill said. “With Instant Payouts, we can cut down that time to hours.”
Streamlining payouts for insurance claim distribution is another way Priority Commercial Payments will leverage Instant Payouts.
“We’re truly honored and excited to partner with Priority Commercial Payments,” Smith said. “We’re looking forward to helping further innovate the way payouts and compensation are handled across multiple industries.”
Consumers’ instant payments adoption has increased nearly fourfold over the past three years, with 42 percent reporting they received at least one such payment this year compared to the 11 percent who said the same in 2017.
This adoption is being driven by consumers’ near-universal understanding of instant payments. Eighty-two percent of consumers now know what an instant payment is, up from 60 percent just one year ago. That knowledge comes from exposure, as adult U.S. consumers receive an average of 18 disbursements per year for a total of $4.6 trillion in annual disbursements.