Disbursements – and more specifically, mass payouts – are moving beyond the paper check and into the digital realm.
In the Mass Payments Report – a collaboration between Tango Card and PYMNTS – the numbers show a significant embrace of the mass payments themselves. In the month of June alone, those payouts to consumers totaled a whopping $108 billion.
See also: The Mass Payments Report
And yet, choice is a bit lacking. As many as 58 million recipients in the U.S. have a choice in how they get paid, but 32 million do not — though 74% of consumers said they’d pay for the opportunity to dictate how they receive their funds.
Drilling down a bit, millennials received the highest number of payouts through rebates, at 98.2 million payments. The lowest number of mass payment transactions came to boomers through property insurance or warranty, at 2.8 million.
And there was some variance with income levels and type of payout received. The data shows that the highest number of rebates went to consumers earning more than $100,000 annually. Those consumers living paycheck to paycheck, and thus struggling, garnered the most payments tied to research and clinical trials.
About 74% of the consumers surveyed said they’d be interested in paying a fee if they were able to get mass payments disbursed according to their preferred method. That willingness cut across all payout types, from rebates to clinical research.
As far as how much they’d be willing to pay, nearly half of the respondents said they’d be willing to pay as much as 10% of the transaction value in order to have payout choice.
See also: The Mass Payments Report
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