Onbe and ScrapRight Enable Digital Payouts by Scrapyards, Recycling Centers

Onbe and ScrapRight have partnered to help scrapyards and recycling centers make instant digital payouts to sellers.

With this partnership, Onbe’s digital payouts gateway has been integrated with ScrapRight’s recycling management software, the companies said in a Thursday (April 11) press release.

“As the latest addition to our end-to-end platform, Onbe’s digital payouts gateway lets scrapyards eliminate the risk and expense of cash management, simplify their operations and provide a better payout experience — a win for our customers and their sellers,” Shon Duty, founder and CEO of ScrapRight, said in the release.

This partnership comes at a time when a growing number of states have enacted laws that restrict or prohibit cash payments for recommerce transactions, according to the release. Nearly half of ScrapRight’s customers are located in states with these new laws.

Transitioning from cash or checks to other payments methods is also more secure and cost-effective for scrapyards and more convenient for sellers, regardless of their banking status, the release said.

The solution enabled by the partnership of ScrapRight and Onbe allows scrapyards to use virtual and physical cards to provide instant payouts in the seller’s choice of off-the-card options, including adding funds to popular payment apps and digital wallets, per the release.

“Today, the overwhelming majority of consumers prefer digital payment options, and our solution equips scrapyards to meet this demand by leveraging the industry-leading recycling management platform they rely on daily,” Melissa Hentschel, chief client officer at Onbe, said in the release.

PYMNTS Intelligence has found that 72% of consumers prefer instant payments when receiving disbursements.

Among those who are receiving payments for freelance, contract or consulting projects, many are willing to pay a fee to receive payments via instant rails, according to “Measuring Consumer Satisfaction With Instant Payouts,” a PYMNTS Intelligence and Ingo Money collaboration.

The report also found that 78% of consumers are very or extremely satisfied when receiving disbursements via an instant payment, compared to 70% among those receiving payouts via non-instant payments.

In another recently announced partnership, Onbe said in January that it teamed up with TimeForge to help restaurant workers get tipped faster. This collaboration brings together Onbe’s digital payout offering and TimeForge’s tip tracking solution.