Financial services tech company Fiserv says it has expanded the portfolio of payout options for businesses using its Carat operating systems to include digital checks.
According to a Wednesday (June 8) news release, the new offering is part of a collaboration with payments processor Checkbook, Inc. and “allows businesses that deliver mass payouts to offer additional choice, speed the delivery of funds to customers, and reduce operational costs associated with paper checks.”
See also: Push Payments Platform Checkbook Nets $10M to Scale API
Digital payouts at Fiserv are part of the company’s Carat operating system, which lets clients offer their customers the ability to choose their preferred payout methods including an ACH deposit to their bank account, a credit to their credit or debit card, prepaid card, or digital wallet or a check.
With the new offering, recipients who ask for a check can opt for a digital check that’s delivered via email in minutes. The customer can print and deposit the check or deposit it digitally.
Read more: Old Habits Keep Paper Checks in Business
“With checks remaining one of the most popular payout methods in the U.S., and accounting for 42% of all B2B transactions, Checkbook is laser-focused on a market that has both traditionally and statistically been underserved,” the news release said.
PYMNTS recently looked at the reasons why businesses still use paper checks in our report on the earnings of business technology company Deluxe, including float, convenience, documentation and remittance processing, as well as the fact that checks fit into businesses’ accounting systems.
“It’s really hard to get small businesses to change what they’re doing, and checks fit,” Deluxe Senior Vice President Tracey Engelhardt said in a blog post. “They work, and if it’s not broken, they’re not going to change it.”
Learn more: Payoneer, Fiserv Team on Cross-Border Business Payments
Fiserv’s product launch comes one day after the company said it had teamed up with payments commerce technology platform Payoneer to streamline how businesses deliver cross-border payments to their sellers, vendors, contractors and consumers.
The partnership allows businesses to access Payoneer’s payouts platform through the Carat operating system from Fiserv, thus reducing the associated cost of global payouts.
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