New Study: Instant Disbursements an Instant Winner With Consumers

For millions, the pandemic has provided a new appreciation for how to send and receive money. That action was already extant when COVID-19 hit, but the ensuing 20-odd months since have changed some opinions, particularly around how disbursements are handled.

The State Of Consumer Disbursements 2021, a PYMNTS and Ingo Money collaboration, surveyed nearly 3,000 U.S. consumers about disbursement preferences. Among key findings in this fourth annual edition is the fact that faster is invariably better.

Per the study, “The growing appetite for instant disbursements presents a massive opportunity for organizations that can provide these recipients the instant disbursement options they crave,” with the study noting that “approximately 158 million U.S. consumers received roughly 11 billion disbursements in 2021, whether from the government, their employers, their insurance companies or others — and 33% of consumers say they would pay extra to receive those disbursements instantly.”

PYMNTS also found that 46% of disbursement recipients “would be inclined to choose instant payments” if available, and 66% would stay loyal to business offering free instant options.

Get the study: The State Of Consumer Disbursements 2021

Willing to Pay for Instant

It should come as no surprise that across the board, consumers have higher opinions of businesses that offer instant disbursements, compared to the traditional variety.

“Consumers have come to value instant disbursements so highly that they are more willing to continue doing business with organizations that offer instant disbursements than they would with those that do not provide instant options,” the study states.

The report found that compared to a year ago, bridge millennials and millennials are 24% and 26% more likely to select instant payments if it was offered today, showing increased awareness.

In fact, “Only 39% of consumers say they would be more willing to continue doing business with senders if they offered direct deposits, by comparison. Even fewer say the same of organizations that offer only disbursements via check.”

Get the study: The State Of Consumer Disbursements 2021

Disbursements Choice Leaps Forward

Consumers didn’t know what they were missing until 2020, when instant disbursements via government aid and other such programs demonstrated the appeal of instant funds.

According to the study, “Given consumers’ tendency to opt for instant disbursements when they can, it is no surprise that the sharp rise in instant disbursements in 2021 corresponds to a similar increase in consumers’ ability to choose the method of receipt.”

Seventy-one percent of disbursement recipients “say they were able to choose between at least two options of disbursement receipt in 2021 — 23% more than said the same last year.”

The study adds that, “Another key reason why more consumers reported receiving instant disbursements in 2021 than they did in 2020 relates to a broader shift in the types of disbursements they receive. Simply stated, consumers are receiving more disbursements from organizations that give them instant payment options and fewer disbursements from organizations that do not.”

Get the study: The State Of Consumer Disbursements 2021