Author: Ingo Payments

Instant Disbursements: How to Meet Consumer Demand in an Evolving Market

Instant Disbursements: How to Meet Consumer Demand in an Evolving Market

May 2, 2024 By Ingo Payments

The number of US consumers using instant disbursements is increasing as we recognize the incredible speed and convenience of digital payment options. Our report “Measuring Consumers’ Growing Interest in Instant Payouts,” built in collaboration with PYMNTS Intelligence, sheds light on this trend, leveraging insights gathered from a survey of over 3,800 U.S. consumers to provide insights that we hope will help guide companies towards making adoption of instant a reality. Here are our top five takeaways from the report on meeting consumer demand for money mobility with instant, digital disbursements, and download the whole report here. 1. Consumers prefer Instant Payments Nearly 60% of United States consumers received disbursements from corporate and/or government agencies in the last 12 months. While this figure is marginally lower than it was at this time last year (due to a modest decline in government-issued disbursements) consumers are receiving more disbursements overall—especially instant disbursements, and the trend up is continuing as we get farther into 2024. 2. Lack of Availability Limits Adoption When provided with the option, consumers favor instant digital payments over slower alternatives. The data backs this up: 77% of consumers expressed a distinct preference for instant payments when given the option. However, a lack of widespread availability was cited as a significant hurdle in the widespread adoption of instant payment methods. More availability equals more adoption, which means that the quicker businesses are on the draw, the more likely they are to gain or satisfy customers through an instant payment offering. 3. Willingness to Pay for Instant Payments is Trending Up Convenience and speed are important to consumers and represent a lucrative financial possibility. Our study shows that consumers are increasingly willing to pay a fee for instant payment capability—29% of consumers would be willing to pay a fee to receive payment instantly, up from 26% in the previous year. Millennials, Generation Z and higher-income earners are some of the demographics most inclined to pay for instant payouts, which means this number is likely to grow as younger consumers gain a larger percentage of market share. 4. Security Concerns Are Lessening Security concerns have historically posed a significant barrier to the widespread adoption of instant payments. Historically, though quick and convenient, these types of payments have had a reputation for being susceptible to fraud and identity theft. However, as market technology around security becomes more sophisticated, and more of an emphasis is put on secure transactions, the data suggests a positive shift in consumer sentiment. Specifically, there has been a decrease in the number of consumers expressing data security apprehensions, with 17% fewer individuals citing security risk as a top reason for not choosing instant payouts compared to the peak in 2021. This trend suggests growing confidence in the safety and security of instant payment methods. Conclusion: Digital Payment Adoption is One the Rise As consumer preferences continue to evolve, businesses and financial institutions must adapt to meet the growing chorus of demand for instant payments. Understanding the trends and insights outlined in the report can help inform the why behind this transition to instant, as well as allow for real-time tracking of adoption across different industries. But the bottom line is simple: staying competitive in today’s dynamic market landscape increasingly requires instant payment options. By aligning efforts to match consumer expectations, issuers can enhance customer satisfaction, retain existing customers, and attract new ones. To delve deeper into the findings, find the full report here to explore solutions for meeting consumer demand for instant payouts, connect with an Ingo Payments expert.
Ad Hoc Payments are on a Fast-Track to Growth: Can You Meet the Demand?

Ad Hoc Payments are on a Fast-Track to Growth: Can You Meet the Demand?

May 2, 2024 By Ingo Payments

Ad hoc payments, which are defined as any payment outside of regular invoicing and payroll processes, have long been a strain for enterprise companies to execute for the small- to medium-sized businesses (SMBs) that rely on them. But if your business is interested in cutting the costs of paper checks and delivering a better customer experience, look no further. The rise of real-time payment methods has created an opportunity to streamline and expedite the delivery of ad hoc transactions like never before. Key findings from “Meeting the Demand for Instant Ad Hoc Payments,” our comprehensive report written in partnership with PYMNTS Intelligence, sheds light on this evolving trend towards instant and disbursement choice for ad hoc payments, exploring the use of instant payments for disbursements to SMBs and consumers across five industry segments: hospitality, gaming, trucking/transportation, gig economy and property management. Read on to learn some key stats and takeaways from the report and download the full report here. The Big Picture: Ad Hoc Payments are on the Rise As the market evolves and the demand for gig/ad hoc work continues to expand across industries, senders report that ad hoc accounts payable (AP) payments represent 35% of their overall ad hoc payment transactions. This represents an overall increase from past years. Speaking to specific industries: gig economy companies (such as DoorDash, Instacart, and Uber) make an above-average share of these payments, at 39%, with gaming companies following closely behind, at 37%. The takeaway here is clear: keep your eyes peeled for a further increase in demand for instant in the ad hoc payments space. Instant Payment Offerings Make a Difference to Consumers Instant is on the rise: according to our survey, payers utilized instant rails for over one-third of payments, marking a significant 28% increase in the last quarter alone. Moreover, the share of senders offering instant payment options has increased, with 32% providing instant payments alongside other options, and 12% exclusively utilizing instant methods. Instant methods utilized for ad hoc payments vary by firm size. Among all enterprise senders, push-to-card stands out as the most popular method, with 19% of enterprises opting to send ad hoc payments via debit card transactions to bank accounts. Zelle ranks second, at 8.9%, followed by payment to a bank account via the RTP Network at 4.7%. Larger payers show a preference for real-time payments, indicating a measurable shift in instant payment preferences as sender size increases. But no matter what size the company is, the trend is towards increased offerings of instant payment options across the market, and these increases being met with enthusiasm by consumers. Cost Concerns Are Diminishing While costs have historically been a barrier to instant payment adoption amount senders, these concerns appear to be dwindling. Only 9.4% of senders cite cost as their top challenge in ad hoc instant payment adoption, down from 22% in the previous quarter. Instead, factors like difficulty correcting payment errors, money security concerns, and legacy IT infrastructure have come to pose greater challenges. These factors are likely to become less of a concern as enhanced security features and updated software make their way into the market. Automation Drives Adoption in Instant Businesses like making money movement easy. As such, there is a clear correlation between the automation of ad hoc processes and the adoption of instant payment methods, with gaming and gig economy senders, at 73% and 62%, respectively, the most likely to have automated processes for ad hoc payment systems. As more enterprises automate their ad hoc workflows, reducing the barrier to entry and capitalizing on a lesser need for increased headcount and processes, interest in offering instant payment options is expected to rise. Ad Hoc Payments Are Growing, Grow with Them The ad hoc payment landscape is evolving and trending upward, with more enterprise senders embracing instant payments to tackle the issue of delayed paper check payments and strengthen business ties with vendors. This has real market consequence: with that growth it will become more and more apparent that senders who fail to adopt instant payments run the risk of losing business relationships with SMBs. In fact, our report shows that nearly half of them would only do business in future with senders who offer instant payments. To dive deeper into the insights of the study and explore strategies for meeting the demand for ad hoc payments, download our full report today, or contact an Ingo Payments representative to learn how we can revolutionize your ad hoc payment solution.
Instant Account Funding: A Game-Changer in Financial Services

What is Instant Account Funding: A Game-Changer in Financial Services

April 26, 2024 By Ingo Payments

In today’s world convenience is king, even when it comes to managing finances. More and more, consumers are demanding swift (if not instant), hassle-free solutions. That’s where instant account funding comes in. Instant account funding refers to a feature offered by a number of financial institutions, designed to meet this need for speed head-on. But what exactly is instant account funding, and what are its key features? Defining Instant Account Funding An instant account funding solution refers to the capability of swiftly depositing funds into an account, typically within seconds or minutes, using various electronic methods. This feature eliminates the traditional delays associated with bank transfers or check deposits, providing users with immediate access to their funds. Whether it’s topping up a savings account, funding an investment portfolio, or making urgent payments, instant account funding streamlines the process with unparalleled efficiency and ease for financial institutions and their customers alike. Key Features of Instant Account Funding What defines instant account funding? And what features make it so appealing to FinTechs, financial institutions, neobanks and their clients? Key features of instant account funding include: Real-Time Transfers: Instant account funding enables real-time transfers, allowing funds to be deposited into an account in seconds via debit and prepaid cards and ACH transfers. This is particularly beneficial for time-sensitive transactions or emergencies, providing users with immediate liquidity. Multiple Funding Sources: Financial institutions often offer multiple funding sources for instant account funding, including bank transfers, debit cards, credit cards, and electronic payment services. This flexibility allows users to choose the most convenient method based on their preferences and circumstances. Enhanced Accessibility: Financial institutions use instant account funding to enhance accessibility for their customers. Whether individuals are managing personal finances or businesses are handling transactions, the ability to deposit funds instantly caters to a wide range of needs and scenarios, from paychecks in the gig economy to healthcare reimbursements. Seamless Integration with Visibility: Instant account funding seamlessly integrates into digital banking platforms and mobile applications, providing users with a user-friendly experience. With just a few clicks or taps, individuals can initiate transfers and see funds reflected in their accounts immediately. Why Instant Account Funding Matters Instant account funding is a game-changer for financial services companies—offering unparalleled speed, convenience, and accessibility. As technology continues to evolve, this feature will undoubtedly become a cornerstone of modern banking, empowering users to manage their finances with greater ease and efficiency. With the growing demand for instant gratification in banking and seamless financial transactions, instant account funding is poised to reshape the way individuals and businesses interact with their finances, providing a smoother, more efficient banking experience for all.
What Is An Electronic Disbursement?

What Is An Electronic Disbursement?

April 4, 2024 By Ingo Payments

In the digital age, traditional methods of receiving payments, such as paper checks, are gradually being replaced by more efficient and convenient electronic or digital disbursements. But what exactly is an electronic disbursement, and how does it work? Let’s break it down. An electronic disbursement, also known as an e-disbursement or digital disbursement, refers to the transfer of funds from one party to another using electronic means, typically through online banking systems or digital payment platforms. Instead of physical checks or cash transactions, electronic disbursements rely on digital channels to facilitate the movement of funds quickly and securely. How Do Electronic Disbursements Work? Electronic disbursements leverage various electronic payment methods to transfer funds seamlessly. Some popular methods include: ACH Transfers: Automated Clearing House (ACH) transfers offer a reliable and cost-effective way to transfer funds electronically. ACH transfers can be used for various types of payments, including direct deposits, bill payments, business-to-business transactions, and person-to-person transfers. Direct Deposit: Employers, government agencies, and financial institutions often use direct deposit to electronically deposit funds directly into recipients’ bank accounts. This method eliminates the need for physical checks and enables quick access to funds, with a turnaround time of only 1-3 days. Digital Wallets: Digital wallet platforms, such as PayPal, Venmo, or Apple Pay, allow users to send and receive money electronically using their mobile devices. Users can link their bank accounts or debit/credit cards to these wallets, making it easy to transfer funds digitally. Push-To-Card: Push-to-card is a method of electronically transferring funds directly onto a prepaid or to a bank account via a debit card associated with a recipient. Funds are pushed from the sender’s account or payment platform directly onto the recipient’s card, typically using the card network’s infrastructure. Push-to-card is an electronic disbursement method that allows instant access to funds. Benefits of Electronic Disbursements: Speed: Electronic disbursements offer rapid fund transfer, often providing recipients with immediate access to funds compared to traditional methods like paper checks. Convenience: Recipients can receive funds electronically without the hassle of visiting a bank or waiting for a physical check to arrive in the mail. This convenience enhances the overall user experience. Security: Electronic disbursements employ encryption and other security measures to protect sensitive financial information, reducing the risk of fraud or theft associated with paper-based transactions. Cost-Effectiveness: Digital/electronic disbursements can be more cost-effective for businesses, as they eliminate expenses related to paper, printing, and postage associated with physical checks. Electronic Disbursements: A Growth Opportunity Electronic disbursements represent a fundamental shift away from old-school payment methods and the time they take to process. These newer, digital disbursements have many benefits, including speed, convenience, security, and cost-effectiveness for both businesses and the clients they serve. While electronic payments are already becoming the norm, as financial technology continues to advance, electronic disbursements are expected to play an even more integral role in the financial transactions landscape—providing individuals and businesses with a seamless payment solution for today and into the future. Want to learn more about electronic disbursements, and how the right payments orchestrater can help you get your digital payments and disbursements in order? Talk to one of our experts at Ingo Payments.
The Future of Banking as a Service Will Include Localized Payment Ecosystems

The Future of Banking as a Service Will Include Localized Payment Ecosystems

April 2, 2024 By Ingo Payments

In the breakneck-paced world of financial tech, digital money movement has become fully intertwined with advancements in banking. As digital banking has become the norm, the field has adapted through the inception and implementation of a new concept: Banking-as-a-Service (BaaS). What is BaaS and Why Does it Matter? Simply put, Banking as a Service refers to the provision of banking services, such as payments, deposits, and lending, by third-party companies rather than traditional banks. It enables non-banking entities, such as FinTech companies or other businesses, to offer financial services without having to build and maintain a full-fledged banking infrastructure. However, this evolution in the landscape has created new and emerging challenges. Namely, the need for a more robust, far-reaching, and secure approach to BaaS. This has given rise to BaaS 2.0—a BaaS model centered around enclosed financial ecosystems. BaaS 1.0, witnessed rapid expansion, driven by collaborative efforts between FinTech companies and smaller/neo banks. These partnerships aimed to leverage technology to enable seamless money mobility from companies to client’s bank accounts.  But the success of BaaS 1.0 created risks and regulatory scrutiny. Issues such as compliance, risk management, and fraud have surfaced, prompting a reassessment of the model’s sustainability, and particularly its scalability and security, as well as the opportunity for a more localized, self-contained banking mindset which keeps money moving within a business, instead of moving it back and forth from clients to businesses and beyond. Why BaaS 2.0 This is where BaaS 2.0 comes in. BaaS 2.0 marks a pivotal shift from the API-centric approach of its predecessor towards sender-centric banking ecosystems. This evolution aims to embed digital banking capabilities directly into a business’s internal payout workflows, while also mitigating risks associated with the myriad of third-party dependencies and creation of a maze-like tech stack just to enable money movement. The core of BaaS 2.0 lies in how banking services are being redefined for consumers and businesses alike. With instant payments becoming ubiquitous, the focus is shifting towards capitalizing on revenue opportunities while ensuring safety and accessibility. One strategy involves embedding instant account issuance within payout experiences, thereby offering banking services with minimal barriers to entry. Our company, for example, exemplifies this approach by leveraging proven, proprietary technology to create enclosed mini-ecosystems. BaaS 2.0: Mitigating Risks By siloing accounts and owning both the tech stack and risk management together, a BaaS 2.0-based strategy minimizes exposure to external risks while delivering a seamless banking experience for clients. An emphasis on enclosed ecosystems sets companies with this existing infrastructure farther along on the BaaS 2.0 path than many more traditional approaches to banking ecosystems. In general, BaaS 2.0 presents opportunities for businesses to rethink their banking strategies. Rather than solely focusing on cost reduction, companies are now exploring ways to foster recurring relationships within their ecosystems. By providing a complete digital banking experience under a fully functional, internalized framework, a BaaS 2.0 model enables corporate partners to drive adoption while retaining control and scalability. Demand will Increase. Will Your Business Be Ready? As the demand for embedded banking capabilities continues to grow, the transition to enclosed, user-centric, scalable solutions is imperative. Ingo is poised to address these needs for companies looking to get started while also offering a migration path to full API ownership for those seeking greater control over their financial operations and a more streamlined experience. Banking as a Service 2.0 represents more than a single step forward. It’s a paradigm shift towards fully or partially enclosed financial ecosystems. By prioritizing safety, accessibility, and scalability, this model paves the way for a new era of banking innovation, where partnerships thrive, and customer-centricity takes center stage.
How Long After Disbursement Will I Get My Money?

How Long After Digital Disbursement Will I Get My Money?

March 26, 2024 By Ingo Payments

The breakneck pace of modern business has created a true need for swift and efficient funds disbursement. When every minute of every transaction counts to your customers, delays in accessing funds can impede handling financial obligations or operations. This is where digital disbursements come into play. Digital disbursements offer a fast and secure alternative to traditional paper check. But just how quickly can a company’s funds be accessed after a digital disbursement? Digital disbursements have emerged as a game-changer for companies looking to streamline their payment processes, decrease the cost of paper checks and increase the real-time mobility of their money. These electronic alternatives to sluggish, paper-based methods are on track to ubiquity. Why? Because digital disbursements prioritize speed, security, and convenience. Unlike the cumbersome process of waiting for a physical check to arrive in the mail, digital disbursements expedite the transfer of funds, ensuring recipients can access their money promptly. One of the primary advantages of digital disbursements revolves around choice: there are various electronic payment methods available, each with its own timeline for funds availability. Let’s delve into some of these methods and their respective timelines (and check out our article explaining the different types of digital disbursements here. Quick access to funds ACH Transfers: Automated Clearing House (ACH) transfers are a tried-and-true staple in digital disbursements, offering a reliable and cost-effective way to transfer funds electronically. Money moves between bank accounts through the ACH network. ACH transfers can be used for various types of payments, including direct deposits, bill payments, business-to-business transactions, and person-to-person transfers. Typically, ACH transfers take 1-3 business days to process, providing recipients with relatively swift access to their funds. Wire Transfers: Wire transfers are electronic transfers of funds between banks or financial institutions. While they are usually faster than ACH transfers, they may still take a few hours to complete, especially for international transfers. Instant Access to Funds Push-to-card: Push-to-card refers to the process of electronically transferring funds directly onto a prepaid or to a bank account via a debit card associated with the recipient. Funds are pushed from the sender’s account or payment platform directly onto the recipient’s card, typically using the card network’s infrastructure. Recipients can then access the funds immediately for purchases, withdrawals, or other transactions. Digital Wallets: Platforms such as PayPal and Venmo enable instant transfers, with recipients often able to access their funds within minutes of the disbursement being initiated. Real-Time Payments (RTP) & FedNow: These modern payment systems enable instantaneous transfers between participating financial institutions. RTP transactions are processed instantly, with funds transferred directly between the sender’s and recipient’s accounts in real-time. Recipients can access the funds immediately upon receipt, making it suitable for time-sensitive transactions. Digital Disbursements: Fast, Secure Money Mobility To run effectively, businesses with a need to provide customers access to funds need to carefully consider the optimal method for their disbursements. They must weigh factors such as speed, cost, and convenience. While traditional paper checks may still have their place in certain types of transactions, the advantages of digital disbursements are undeniable, especially in terms of their speed. By embracing electronic payment methods, businesses can streamline their operations, enhance cash flow, and deliver a superior experience for recipients. They can cut the arrival time for a customer’s funds down from waiting a week for a check in the mail, to just one to three days with ACH. Or they can join the instant payments revolution and give their clients instant access to the funds they need through push to card, digital wallets, RTP and FedNow. While the timeline for accessing funds after a digital disbursement varies depending on the chosen payment method, there’s no doubt that going digital speeds up the timeline for customers interested in accessing their money. At any rate, by leveraging the efficiency of digital disbursements, businesses can position themselves for success in today’s fast-paced business landscape and get money into their customer’s pockets quicker and more efficiently.