Getting Stimulus Funds To Those Who Need Them — Without The Paper Check

stimulus check

The stimulus bill designed to combat the economic ravages of COVID-19 is massive.

Getting that aid into the hands of affected families — wracked by swelling unemployment numbers, and of course, an ongoing healthcare crisis — will be slow going.

If ever there was a time to kill the check, that time would be now.

The $2 trillion economic stimulus bill is making its way through Congress, having been approved by the Senate and now up for consideration by the House. As part of that stimulus package, payments of as much as $1,200 will be given to individuals, and $500 per child.

The logistics of getting that cash into the hands of those who need it show a bit of a divide. As reported, those Americans with direct deposit account information stored with the Internal Revenue Service (IRS) — the conduit through which they get refunds — will get those payments within a few weeks after legislation is finalized and signed. That’s about 70 million Americans.

The remaining tens of millions, those who do not have direct deposit payment information on file with the IRS … will have to wait for the proverbial (paper) check in the mail.

Thus far other options to get these urgently needed funds to those who need them, in the digital sense, are not being embraced fully.

But those options are there, and at the ready.

In one example, Mastercard has been working with a number of public agencies to get federal benefits to 4.5 million recipients faster through Direct Express, where Comerica Bank acts as the Treasury Department’s financial agent for prepaid debit cards.

There also is Mastercard Send for push payments as an alternative to ACH. In an interview with Karen Webster, Kathryn Cleary, Mastercard’s senior vice president of business development for North America, pointed out that push payments offer a cleaner authentication path and requires less sensitive user data — where the 16-digit card account number acts as the authenticator.

Visa’s own push payments offerings come through Visa Direct, which “reverses” payment flows across the Visa network, enabling real-time payouts to debit and re-loadable prepaid cards. In an interview with Webster late last year, Bill Sheley, global head of push payments for Visa, said that a series of partnerships helps the network giant cover “99 percent-plus of banks, consumers and small businesses.”

Growth in Prepaid

Prepaid cards are gaining increased traction, as users find convenience in being able to access (and allocate) funds as needed.

As noted in this space last month, ADP surveys of 500 U.S. employees found 35 percent were paid by direct deposit, and that members of that sample held two or three prepaid cards to help them budget or designate different cards as spending “buckets.”

Belinda Reany, division vice president and general manager at ADP, told PYMNTS consumers have a reason for that. “More than half the people we spoke to [said], ‘I need to save me from myself,’” Reany explained. “[They said], ‘I know I need to be more disciplined about my spending, but I need structure. I need to be able to segregate the money into my entertainment envelope or rainy-day fund or whatever, so I can get into that rhythm.’ [There’s a] shift toward supplementing traditional banking accounts with alternative payment mechanisms.”

Prepaid cards also can allow those without bank accounts (i.e. those who wouldn’t get funds directly from government agencies deposited directly to traditional banking accounts) to have access to funds. It’s a sizable chunk of the U.S. population, as the Federal Deposit Insurance Corp. (FDIC) has estimated that 8.4 million households are unbanked, at 6.5 percent of the population.

The Security Aspect

Security, of course, is top of mind and front and center (or should be) when it comes time to send out those stimulus funds, highlighting the appeal of push payments.  Drew Edwards, CEO of Ingo Money, noted the importance of that in a separate interview with Webster:

“Mobile deposit fraud was a $2 billion a year problem for banks before we were in a crisis where everybody’s desperate and people are fighting over bottles of water and toilet paper in the supermarket lanes,” Edwards said. “What do you think happens to people when they get desperate? When they haven’t been paid in a few weeks? They steal checks. So the fraud goes up, not down. The risk aversion goes up, not down.”

Edwards said platforms such as Ingo Money can speed (and secure) authentication by triangulating data on the check, data supplied by the recipient, and information gleaned from third-party databases, and then push payments to the end user.

The stimulus is urgent, but the way it’s laid out now … with reliance on the paper check, it may all translate to a rough period of “hurry up and wait.”


March Madness 2025 and Beyond: When AI Meets the Big Dance

March Madness 2025 and Beyond: When AI Meets the Big Dance

As the calendar flips to March, college basketball fans are gearing up for another exhilarating NCAA tournament.

In the future, artificial intelligence and cutting-edge technology could change March Madness as we know it. Let’s break down how the digital revolution could transform the Big Dance.

AI Bracketology: The New Sixth Man

AI is already being used to predict brackets. Gone are the days of agonizing over your picks based on team mascots or your alma mater’s colors. In 2025, AI-powered bracketology is the name of the game. Fans can use algorithms that crunch data points, from player statistics to historical upset probabilities, all at the click of a button.

But beware, bracket enthusiasts. While these AI tools promise to boost your chances of winning the office pool, they can’t account for the quintessential March Madness chaos. You know, the instance where AI can predict everything except the inevitable Cinderella story that ruins everyone’s bracket by the second round.

The Rise of the Robo-Commentators

In a move that would be sure to ruffle some feathers, AI-generated commentary could be used for games. Digital play-by-play announcers would never need a bathroom break and potentially be able to recall obscure statistics from the 1957 tournament in an instant.

Virtual Reality Courtside Seats

Can’t make it to the Final Four? Ten years from now, games might happen in a digital stadium, Forbes reported. With virtual reality (VR) technology, fans could experience the thrill of courtside seats from the comfort of their living rooms.

“AI-generated athletes, inspired by the procedural generation techniques of video game developers … could perform in virtual arenas, exhibiting strategies and plays conceived by advanced predictive algorithms,” Forbes reported.

Just be careful not to get too caught up in the moment with streaming. Wouldn’t want to have reports of fans attempting to rush the virtual court after buzzer-beaters have led to an uptick in living room injuries — especially when that flat screen falls over.

AI Coaches: The Ultimate Clipboard Holder

While human coaches still call the shots, AI assistants could one day be indispensable members of the coaching staff. In the next five years, these digital strategists could analyze opponent tendencies and more.

“Building on existing technologies … AI will provide coaches and players with intricate, multi-dimensional data patterns that dramatically enhance both offensive and defensive strategies,” Forbes reported. “These advanced algorithms will analyze vast datasets from numerous games to uncover hidden trends, strategic insights, and predictive cues about opponents’ potential moves.”

The Referee’s New Best Friend: Computer Vision

Say goodbye to controversial calls. Advanced computer vision systems could assist referees in making split-second decisions, from determining if a player’s toe was on the line for a three-pointer to detecting the slightest touch on a blocked shot.

The Hawk-Eye system is already used in tennis and cricket to help determine fouls, Viso.AI reported.

“This system uses a network of cameras to track the ball and then compares the trajectory of the ball to a virtual model of the playing surface,” the report said. “This system is accurate within a few millimeters, which is much more accurate than the human eye.”

The Future of Fandom

As we dive into March Madness 2025, it’s clear that technology will change the way we experience the tournament. From AI-powered brackets to virtual reality arenas, the digital revolution is coming for basketball. But at its core, the magic of March Madness remains the thrill of competition, the joy of unexpected victories, and the heartbreak of last-second defeats.

So, whether you’re relying on an AI to pick your bracket this year, or screaming at a holographic referee in the future, remember to enjoy the ride. In the unpredictable world of college basketball, sometimes the best strategy is to embrace the madness — digital or otherwise.

For all PYMNTS AI coverage, subscribe to the daily AI Newsletter.