A new study conducted by Forrester Consulting on behalf of Ingo Money shows that 93% of companies are failing to make business-to-consumer (B2C) distributions in the way customers expect to be paid. By using legacy payment instruments like paper check or ACH deposits, these businesses ignore consumer preferences for safe-to-spend funds delivered immediately, conveniently and in the account of their choosing. The study finds that overwhelming consumer demand for real-time disbursements has primed the market and presents an opportunity for companies to boost customer engagement and operational efficiency.
The January 2019 commissioned study Legacy Disbursements Methods Fail to Satisfy Today’s Modern Customers surveyed over one hundred financial service executives and more than one thousand U.S.-based consumers to better understand instant payment preferences and fulfillment. Key findings from the study include:
- An enormous $6-$9 trillion in B2C disbursements are paid out annually;
- Legacy payment methods including checks or ACH deposits are still used by 93% of companies;
- Almost half of customers (49%) who were not given a choice of where to take receipt of their funds felt negative in some way;
- 22% of consumers have heard of instant payments and have used them to receive funds;
- Immediately available and safe to spend funds are a disbursement priority for 62% of consumers;
- 72% of consumers said they would try instant payments at least once.
“Consumers are clear: when it comes to receiving money… they want to choose where to receive monies owed to them; they want the funds to be available and safe to spend immediately,” according to the Forrester Consulting study. “Businesses and government agencies who are slow to innovate toward payment methods that meet customer demands put themselves in a dangerous position of losing customers and having poor CX scores.”
These findings were made against the backdrop of rapid overall digital transformation within Corporate America. Yet despite a move to digital-first consumer experiences generally, companies have continued to rely on legacy payments instruments even though 68% of businesses reported monies take three or more days for disbursement and 38% of transactions experience fraud when using paper checks.
Companies that deliver on the promise of instant payments stand to benefit with increased customer satisfaction, augmented revenue, and reduced costs. A separate June 2018 commissioned study conducted by Forrester Consulting estimated that 20% of customers opening an account at an institution did so primarily because of instant payments. That same organization saw 20% greater account reuse than before instant payments were offered.
According to the Association for Financial Professionals (AFP), businesses can also save as much as $4 per check by digitizing labor-intensive payments processes.
For a copy of the Forrester study, click here.
Ingo Money CEO Drew Edwards said instant availability and usability of funds is all but expected across the payments space these days, thanks largely to the success of P2P platforms like PayPal’s Venmo or bank-backed Zelle.
Ingo Money, he told Bank Innovation, is an instant money company providing mostly B2B and B2C services, usually through banks and alternative financial services providers, across a variety of use cases like instant deposits.
Read the complete article at bankinnovation.net (subscription required)
While US banks slowly migrate to real-time payments, one fintech is already providing instant push-to-card payments to consumers and businesses. Ingo Money is forging alliances with banks, insurers, payment processors and Visa in its bid to eliminate paper cheques and ACH payments.
Read the complete article at verdict.co.uk (subscription required)
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The use cases for faster payments are typically considered to be somewhat niche: payments to the gig economy, immediate insurance disbursements, disaster relief, etc. But if any payment can be made in real time, why should full-time employees wait two weeks for every paycheck?
As more employees learn of the proliferation of faster payment options, either through their own use of P2P systems like Zelle or by chatting up their Uber drivers, they will expect similar treatment with their own payments.
Read the complete article at paymentssource.com (subscription required)
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With the launch of Ingo Money QuickConnect last week, the company capped off a year that CEO Drew Edwards told Karen Webster could best be characterized as the “Great Awakening” of push payments.
“We’ve finally moved beyond ‘so what is a push payment?’ to ‘how do I deliver real-time payments or fast funds to my customers?’” Edwards explained.
The proof point, Edwards said, is the sheer number of Request For Proposals (RFPs) “flying at the top of the smokestack economy left and right” at the same time that gig economy platforms, including some of the early adopters, are looking to upgrade their disbursements tech.
Read the complete article at pymnts.com
Visa is partnering with Ingo Money to launch a product for merchants and banks to quickly get onto the payment network’s systems allowing fast digital payments to customers.
It’s the latest sign of the rise of push-to-card payments where companies use existing card networks to push money to customers, reversing the traditional flow of dollars. In cases where companies want to send money to customers – say, a small business loan or an insurance payout – the method replaces paper checks or the decades-old Automated Clearing House (ACH) network, sending money over debit-card rails directly into users’ checking accounts.
Read the complete article at cnbc.com
Payment stock Visa (V) has inked a deal with privately held Ingo Money to offer companies an alternative to paper checks, as business payments belatedly move into the digital age.
Ingo Money QuickConnect is touted as a turnkey solution that allows companies to pay customers immediately via push-to-card payments through the Visa Direct platform.
“There has been significant growth in push payments driven by increased customer demand for instant access to funds,” Visa Direct North America head Cecilia Frew said in a press release. “We are excited that Ingo Money, one of our first enablement partners, is helping to maximize Visa Direct’s capabilities to create a seamless, integrated push payment solution for end-users through Ingo Money QuickConnect.”
Read the complete article at investors.com
Digital funds transfer provider Ingo Money is launching a new software integration with Visa Direct to allow customers to initiate push-to-card payments. Ingo Money QuickConnect allows merchants, corporations, banks and other organizations to quickly deploy Visa Direct-powered, real-time corporate disbursements. The new software includes bank sponsorship, user authentication and account verification tools, as well as payment routing and other features.
Companies currently engaged in the slower processes of ACH payments or paper checks when paying suppliers and vendors, would be able to meet the demand of its customers preferring faster transfers direct to payment cards, Atlanta-based Ingo Money noted in a Thursday press release. “We’ve heard time and again from customers that they need to deploy a push-to-card payment solution but are intimidated by the time and effort required,” Ingo Money CEO Drew Edwards said in the release.
Read the complete article at paymentssource.com