First Data, a global leader in commerce-enabling technology, announced its new “Disburse-to-Debit” solution, a low-cost payout option for businesses with gig economy workers that delivers funds directly to a debit card.
The real-time debit payment solution will not only benefit participants in the gig economy, such as ridesharing platforms or home rental marketplaces, but also businesses that produce high volumes of consumer payouts, including insurance claims, rebates, refunds, commissions and more.
For the more than one in three Americans who are part of the gig economy, this will enable them to get paid quickly when the job is done.
“Whether it’s a driver for a ridesharing company or a small business owner needing disaster relief following a hurricane, our new technology allows businesses to make payments in real-time,” said Dan Charron, executive vice president and head of global business solutions for First Data. “This new solution eliminates the friction associated with traditional disbursement methods, delivers speed and simplicity to the consumer and reduces the cost of payment acceptance.”
First Data’s Disburse-to-Debit technology offers instant “push” payments across a broad range of debit networks, employing a single connection with access to domestic and international debit networks to deliver funds in real time.
The solution also works with prepaid offerings like First Data’s Money Network service, which provides a convenient prepaid debit card option for underbanked consumers. And funds are distributed at a lower cost thanks to First Data’s industry-leading debit routing technology.
“The digitization of commerce has caused consumers, including tech-minded individuals working in the gig economy, to expect convenience in every interaction,” said Ashish Bahl, head of global debit solutions at First Data. “The ability to instantly push payments is a powerful point of differentiation for companies hiring ‘gig’ workers because, ultimately, it streamlines the pivotal point of interaction in the relationship – getting paid for each gig.”
Earlier this year, the company announced a new tool for the sharing economy: the First Data Global PFAC solution, which provides a slew of capabilities to payment facilitators. With PFAC, companies can access a single integration interface that makes it easy for merchants to authorize transactions in more than 150 currencies around the world and settle in 17 currencies.