As the company notes in a Wednesday (April 26) news release, these payouts are triggered by a payer who “pushes” funds in real time to a recipient’s account via a Visa or Mastercard debit card or reloadable prepaid card. Unlike bank-to-bank transfers, Push-to-Card Payouts are settled in real time and with only the payee’s name and email needed for set up.
Push to Card provides value in scenarios where virtual card acceptance isn’t possible, ConnexPay said. For example, it lets businesses pay gig workers who drive for delivery aggregators like DoorDash or GrubHub in real time, rather than requiring them to wait several days to receive a check or ACH payment.
“This partnership is a natural fit for us, as both companies are committed to providing innovative and reliable payment solutions,” said Payouts Network CEO Keith Smith.
“We look forward to working with ConnexPay to bring our Push-to-Card solution to businesses across various verticals.”
The partnership comes at a time when demand among consumers for “instant disbursements is at a crossroads,” as PYMNTS wrote recently.
While more people like the concept of getting refunds or insurance claims deposited directly onto cards or into accounts, many are held back by data privacy fears or fee concerns.
It’s a significant issue, as per research in “The Disbursements Satisfaction Report 2023: Instant Payouts Reach an Inflection Point,” a collaboration between PYMNTS and Ingo Money.
Research from that report showed that 63% of all consumers got various types of disbursements, but just 22% said they received them as instant payouts.
In addition, the study notes that 36% of consumers who had the option to receive an instant disbursement chose not to because they didn’t want to share their card information for a push-to-card option. One-third of the consumers surveyed said they didn’t use an instant disbursement because they didn’t want to share bank account information.
At the same time, additional research shows that shifting consumer preferences for transaction speed and ease have led many businesses to embrace faster payment methods.
“In fact, 54% of North American businesses say payment speed is a primary reason for adding digital payment options at all,” PYMNTS wrote recently. “Businesses recognize the power of faster payments and are investing in such systems to help drive business transformation.”