Push Payments: Faster Payments For The Property Management Sector

Push Payments: Faster Payments For The Property Management Sector

January 30, 2024 by Ingo Payments

The property management sector thrives on a constant flurry of financial activity. Landlords employ and contract with a variety of vendors and suppliers to keep their property grounds maintained, the sinks and toilets unclogged, and everything running smoothly. Tenant turnover demands an endless to-do list of repainting rooms, removing scuff marks from floors, and cleaning carpets. And everyone, from plumbers and groundskeepers, to HVAC companies and movers, needs to get paid. That said, traditional vendor payments in property management are long overdue due for a digital makeover. Digital push payments for property management and services have already become a reality for thousands of companies., including platforms like AppFolio. And this is just the beginning. To stay on top of property management financial services, it’s imperative to understand push payments and how they might work for your business.  What Are Push Payments? So, let’s get started. To understand push payments, let’s first define what a traditional pull payment is. Pull payments are payments initiated by any payee where a company “pulls” requested funds from a payee’s account.  Pull payments can be an integral part of running a recurring payment system. Think monthly rent payments: with pull payments, your residents don’t need to remember to write a check each month, and you don’t need to remind them that rent is due.  Push payments do the same work, in reverse, allowing the payer to initiate the transfer of funds into a payee’s account and giving both parties more control over the payment process. Push payments are faster, allowing the payer to immediately transfer the funds to the recipient’s account. There are many types of push payments, depending on where the payment is going and the speed with which it is delivered—to bank accounts by debit card (called “push to debit”), by ACH and RTP transfer, the new FedNow and to digital wallets. The Trend Towards Real-Time Across Verticals The property market’s trend towards real-time push payments mirrors a wider marketplace change. Many markets are moving away from the slower rails and paper, especially for ad hoc payments. And the stage is set for an even wider embrace of instant payments. For example, studies show that when a push to debit instant payment option is offered, in comparison to a traditional payment method, people go for it. Across Ingo’s client base, push to debit payments currently account for between 40% to 70% of overall transactions where they are offered.  Even industries like trucking and movement logistics have seen a significant shift towards digital wallets and instant push payments. Their adoption of these instant payments has significantly streamlined complex interactions and financial management across their distributors, warehouses, carriers, brokers and beyond.  Additionally, the rise of the gig economy through apps like DoorDash and Uber has spurred key adoption of instant payments for freelance invoicing. This shift has helped numerous companies retain their best contractors and increased gig work satisfaction.  These are just a few examples. Broadly speaking, the world is trending toward fast, digital transactions with instant push payments at the forefront—in property management, related verticals, and beyond.  Specific Benefits Property Managers Push payments, like push to debit, has specific benefits for property management companies, especially in streamlining vendor payment capabilities. Before instant payments, a property manager had to juggle and keep track of multiple invoices, vendors, and check numbers. With push to debit, property managers can instantly pay vendors directly into debit accounts when work is done, decreasing delays and avoiding the “out of sight, out of mind” headache that comes with non-instant payments.  This speed is also useful in financial planning for property managers and vendors alike, because managers aren’t left wondering when a vendor will cash their checks, and vendors don’t have to worry about when the business will get around to sending it. Win-win. Beyond speed, push payments offer a reduced risk of fraud for property managers. Why? Because the payer initiates the transaction, and the payee does not have access to the payer’s bank account information. This compartmentalization reduces potential data breaches and keeps sensitive information more secure.  Push payments are also simply easier. They can be made anytime, anywhere. The process is straightforward and user-friendly for both sides. With just a few clicks on a mobile app, managers send money and vendors get paid.  Less Redundancy, More Reliability Digital connectivity for instant money transacting has always been relatively simple. An API is an API. But it’s the other pieces to the payments equation—from connecting sponsor banks and managing risk and fraud, to the ongoing management, optimization, enablement of low-cost routing, redundancy and ubiquity that are the real contributing factors to the overall complexity of payments—and differentiating factors with push payments.  As a business begins to operate and expand, transactions multiply. The availability of push payments in lieu of more traditional methods not only speeds up payments themselves but also reduces reliance on paper checks and the crisscrossing of invoices and approvals, or else the three-day wait for ACH transactions to settle. This alleviates cash flow issues and visibility for handymen, electricians, lawn care firms, regional suppliers and anyone else who previously had to deal with receipt tracking and reimbursements. Closing The Gap For Property Management Payments Significant progress has already been made in residents embracing digital channels (using their debit cards) to pay monthly rent. As individual consumers, we’ve grown familiar with peer-to-peer (P2P) payments through PayPal, CashApp and Venmo.  But property management can uniquely and substantially benefit from the adoption of push payments through the implementation of push to debit and beyond. Vendors in property management are coming to expect increased speed and choice in accessing their money, and push payments is a surefire way of making both happen with minimal headache.  The shift toward instant access to money via push payments will soon become standard and lead to new opportunities to embed payments even more fully into company workflows. Artificial intelligence (AI) might also be used to help automate the invoice-to-approval continuum. In other words, the future of push payments is bright.  With the adoption of the FedNow service and as other large corporations allow instant payments to take route within their own business practices, and as a new generation of renters and business owners come into their own, the desire for a variety of digital payments will become an expectation. So watch this space because the instant money push payments revolution is only beginning. Better Push Payments With Ingo Ready to institute push payments for your property management company? Ingo Money powers embedded payments at scale. Established in 2001, we provide instant payments, payouts, account funding, and digital issuing solutions for companies of all sizes, with risk management expertise and network reach to over 4.5 billion consumer accounts. Want to learn more? Contact us today!

Introducing Ingo Payments

January 12, 2024 by Drew Edwards

For over 22 years, Ingo Money Inc. has made money accessible, instant, digital, and secure for businesses and their customers.  We are proud of our long history and the experiences our teams have brought to the marketplace through true partnerships that have stood the test of time. There are new entrants to this space all the time, but it’s impossible to get 22 years of experience in a day less than 22 years. We have successfully served our clients through multiple economic cycles with a turnover rate of near zero.   As the concept of Money Mobility has evolved in the marketplace, our product lines have expanded, creating the need for the introduction of a new brand—one more targeted at banks and corporations seeking to capitalize on the tremendous opportunities brought about by modern digital money movement.  Today, I am delighted to introduce Ingo Payments. Our new brand builds upon the strong foundation of our Ingo Money brand and aims to better differentiate our offerings to businesses seeking diverse payment services.  Why Ingo Payments? We take immense pride in our rich history of providing check risk management, enterprise, and mobile check cashing services to our clients. Over the years, under the Ingo Money brand, we have successfully delivered these solutions to a wide range of banks and fintechs, solidifying our standing within the industry. This part of our business continues to enjoy double-digit growth rates as more consumers migrate their transactions to mobile first.  With the introduction of the new Ingo Payments brand, our goal is to further strengthen our ability to address the needs of a rapidly evolving digital market. Operating these two unique brands in harmony will enable us to communicate and distinguish our specialized services more effectively.   Two Brand Identities The Ingo Payments brand will house our embedded payment solutions—including digital disbursements, instant account funding, payment acceptance and upcoming banking-as-a-service offerings. You can explore these offerings here, on our new Ingo Payments website.  The Ingo Money brand will continue to reflect our check solutions, including our check risk management APIs, mobile check cashing SDK and the Ingo Money App.  Our Pledge to You  Whether you are a prospective or current partner or client of Ingo Money, Ingo Payments, or both, our team remains committed to providing you with the most innovative payment solutions coupled with our unparalleled service and support. Here’s to a future filled with new payments possibilities! 

Comparing RTP, FedNow and Push-to-Card

August 30, 2023 by Drew Edwards

Instant payments have become the de facto expectation for consumers and businesses alike. Brands that cannot deliver on the promise of real-time, safe-to-spend funds will quickly find themselves losing ground to the competition.  Companies in the United States seeking this new standard have a growing number of payment options to choose from, including Same-Day ACH, push-to-card, the RTP® Network, and – now – FedNow. It can be confusing to know which is best suited to your needs and what advantages one holds over the others.  At Ingo Payments, we believe in the power of instant payments and recipient choice. We support a wide array of options, many of which enable real-time delivery of funds to accounts or cards.  To help make sense of which real-time payment options might be best suited for your business, we’re breaking down the key differences between the RTP Network, FedNow and push-to-card.  The RTP Network Launched in 2017, the RTP Network is the latest payment network from The Clearing House (one of the key owners/operators of the ACH system). It delivers payments of up to $1,000,000 that settle in just seconds to bank accounts at participating institutions, 24x7x365. Consumers or businesses use the ABA/Routing number typically found at the bottom of a check or in their online banking experience as the alias for receiving money.   Most of the big banks and the larger regional banks participate in the RTP network, but it is not yet ubiquitous.  FedNow Launched in July 2023, FedNow is the Federal Reserve’s new instant payment service. Like with the RTP Network, it promises ‘always-on’ instant settlement and uses the same ABA/Routing number for an alias. Transaction amounts are capped at $500,000 per transaction but it still has limited reach with only 274 (mainly small) banks connected so far. It holds promise to extend instant payments to more financial institutions – including smaller, community banks – but a survey by Cornerstone Advisors found that less than half of banks and credit unions plan to offer real time payments by the end of this year.  Push-to-Card Push-to-card payments use the existing card networks’ payment rails, just in reverse. Funds can be sent directly to a bank account via an eligible cardholder’s debit card or prepaid card in near real-time. Push-to-card already has coverage for 98% or more of the accounts and cards in market today. Equally important, most consumers – especially younger ones – are comfortable using their card number as a payment alias. These are reliable payments that can reach any account on that card company’s network, making its reach to cardholders nearly universal. Like the RTP Network, the system is available 24x7x365, but with transaction amounts of up to $125,000.  Choosing an Instant Payment Option The Ingo platform enables seamless orchestration of payments across all relevant instant rails, including both the RTP Network and push-to-card, to provide our clients with flexibility when choosing payment options. Ingo also supports additional payment options such as PayPal, Venmo, ACH, and paper checks. In practice, much of this comes down to familiarity on behalf of the recipient. Consumers often don’t know the difference between the RTP Network, FedNow or push-to-card – they only know that they want their money in their account as fast as possible. Their preference is likely determined by whether it’s easier to enter a card number or a bank account number. For companies, that means it’s important to provide coverage across multiple options to ensure you’re meeting customer demand and expectations. In the case of Ingo Payments, we solicit destination account information from recipients then process the transaction using the fastest available rail, according to their preference. If that’s a bank account, then it depends whether the receiving bank is on an instant payment network. If it’s a debit card number, then it settles instantly. This is why neither the RTP Network nor FedNow serve as good standalone options for digital disbursements compared to push-to-card or traditional ACH today. Together, they only cover about 65% of available accounts, meaning that even combined they don’t provide the ubiquity needed for full adoption. They are better viewed as “plumbing” that can serve as accelerants to ACH because a payment can be diverted to an instant rail versus the ACH batch rail if it’s using the same alias. The Future of Instant Payment Rails Ultimately, we see both the RTP Network and FedNow as potential ACH killers because they can deliver instant funds without the recipient ever having to know about them or make an explicit choice of payment rail. There is also the potential for FedNow to complete the coverage begun by the RTP Network through its appeal and reach to smaller banks. If that happens, then all bank account transfers using the ABA/Routing number alias could convert to instant payments. Over time, the RTP Network and FedNow may also prove advantageous for business customers versus push-to-card. Oftentimes, large businesses do not have a debit card option and must rely on ABA/Routing number aliases. In that case, these two rails are an obvious preference over push-to-card. Further, any use case that requires invoice data or other information to travel with the payment is better suited to the RTP Network and FedNow because push-to-card does not have that capability. No matter your preference or which rail is best suited to your use case, the challenge is in integrating to them. There is no interoperability between the RTP Network and FedNow or between push-to-card and ABA/Routing number aliases. The burden is on the company to do multiple integrations and to build some form of routing and support capabilities. This is further complicated by the reality that the technology, risk management, regulations and support requirements are different for each payment rail. And on top of that, each involve coordination with card networks, wallets, international wallets and more. The task can be daunting. This is the heart of the Ingo Payments value proposition. We make the process seamless for clients by offering payment orchestration across all the relevant rails through a single API, to ultimately deliver on customers’ expectations for a modern payments experience. 

More from the Ingo blog

How a Full-Scale Payout Solution Might Work for Your Business

What Do We Mean by a Digital Engagement Platform? How a Full-Scale Payout Solution Might Work for Your Business

July 23, 2024 By Ingo Payments

It seems like these days every transactional business is looking for a way to simplify and accelerate payouts and disbursements. Many companies are turning to payout orchestration providers like Ingo Payments, to handle every facet of a disbursement, so they can essentially “fire and forget it”.  While Ingo Payments offers a host of embedded payments technologies, we pride ourselves on the comprehensive scale of our DigitalPay SaaS platform. Simply put, our DigitalPay SaaS platform is an end-to-end payments platform that seamlessly manages customer digital engagement and payouts orchestration across the disbursements lifecycle, from initiation to settlement, while ensuring security, compliance, and risk management, in a custom-branded experience. But what are the components of our DigitalPay SaaS solution? And what makes it a superior choice for a company looking to implement digital disbursements without the hassles of building internal infrastructure or managing risk and compliance?  This article will walk you through the benefits of a full-scale solution and discuss what makes Ingo Payments a top choice that can make payouts easier for your business, no matter what industry you operate in. (For more information on how Ingo can work to create a bespoke payment solution for your specific industry needs, check this out.) What Do We Mean By “Full-Scale”?  Launched in 2019, Ingo’s full-scale platform supports both single- and multi-party ad hoc and recurring disbursements and P2P payments. It offers configurable, dynamic workflows, as well as comprehensive risk and compliance management.  All this comes with a customizable look, tone, feel, and voice for your unique business. Our platform can be configured for both small-scale individual clients and large, enterprise payment systems. In other words, whatever your needs, the DigitalPay SaaS platform will fit your business.  But let’s break down our platform’s key features and how they might help a business scale.   A Customizable Digital Payment Center platform  Building out an interface for a digital payments disbursement center is no small task: it involves extensive development work as well as UX design to support a wide array of workflows and user journeys. It also requires complex back-end integrations with both existing payment rails and external partners. Ingo makes the whole process simple by offering a proprietary digital payouts solution that is easily configured and fully brandable, incorporating your existing website or mobile app interface’s look, tone, and feel and your brand voice.  Robust Payments Processing Our SaaS platform offers broad payment choice and reaches over 4.5B accounts, including bank accounts by debit card, RTP and ACH, credit cards, digital wallets, even instant digital accounts and cards providing disbursements recipients with unmatched choice—which leads to increased customer satisfaction.  That’s the Ingo difference. Our proprietary payments network is designed to provide redundancy, automated failover, and least-cost routing. This network was created based on decades of experience and long-established integrations with payment networks and top-tier financial institutions. Our clients can rely on these direct integrations to ensure that their money reliably goes to the right place at the least cost, every time.  Risk Management/Compliance: User Authentication and Account Verification When it comes to payment processing, risk management, and compliance are vital aspects of ensuring that money ends up in the right place. Good risk management begins with user authentication. Ingo provides a variety of authentication capabilities, including knowledge-based, multi-factor, one-time authorization and single sign-on integration options. Authentication methods may vary by use case and according to custom risk rules. Ingo’s DigitalPay SaaS solution boasts multiple customer payment options, which means that behind the scenes verification (name, address, account number, codes and routing numbers, etc.) and comparison of data sets between client and customer is a vital aspect of keeping money secure.  The Ingo solution also includes counter-verification through payment network or third-party services which matches up data and ensures that an account is in good standing in terms of ownership as well as status before money is moved, reducing payment failures and transactional risk.  Different companies have different needs associated with risk, often depending on the amount of funds involved in day-to-day transactions. The Ingo solution allows individual clients to determine what they want their risk rules to be, and how robust their risk management engine is. We then configure the platform to balance seamless/frictionless transactions with tighter, more customer-intensive verification.  Payment Reconciliation Our payment orchestration system keeps track of all transactions to ensure that the amounts settled match the amounts processed. Discrepancies are flagged for further inspection in our reconciliation platform, which works to ensure accuracy in every transaction. Ingo also provides daily line-item reconciliation reporting and aggregated treasury account settlement to ensure maximum security and clear visibility into your numbers.  Reporting and Analytics Speaking of data, Ingo’s SaaS solution boasts comprehensive reporting and analytics tools that provide insights into transaction volume, metrics associated with your customer journey and behavior (from risk screening to payment type mix), and other key performance indicators. This data helps businesses optimize payment strategies and identify areas for improvement, ultimately upping client satisfaction and reducing friction.  In addition, SaaS clients not only get financial business performance, but also trend reporting and industry benchmarks to get you the insights you need to guide business decision-making. Data Security Ingo maintains data security and integrity meeting data encryption standards for non-public personal information and financial data. This means maintaining compliance with SSAE SOC 1, Type 2, SOC 2, Type 2, and PCI DSS Level 1 security standards, which is considered the most robust in each category. Unparalleled Client Servicing and Support Throughout the entire process, our DigitalPay SaaS platform prioritizes a seamless and frictionless client experience, minimizing payment errors, delays, and disruptions. We provide our clients with end-to-end operational support for payment disputes, including proof of payment evidence and clawback requests.  Ingo also conducts quarterly business reviews to optimize your disbursements program, receive feedback and inform future product offerings. In Conclusion Ingo Payments’ full-scale, DigitalPay SaaS platform is a best-in-class all-in-one solution for building and scaling digital disbursements capabilities for companies across a wide spectrum of payout needs. Ingo provides infrastructure and support to make adding disbursements a breeze for businesses of all sizes, from start-ups to enterprise-level businesses.  To learn more about how the Ingo SaaS platform might work for your specific business needs, contact a specialist here.
Transforming Travel & Tourism Tech with the Power of Instant Payouts

Transforming Travel & Tourism Tech with the Power of Instant Payouts

June 13, 2024 By Ingo Payments

Technology within the travel and tourism industry is evolving rapidly, driven by innovations that enhance customer experience and operational efficiency. One area that still faces significant challenges is the speed and transparency of financial transactions. From customer refunds to employee payouts and vendor payments, the traditional methods in place, such as cash tips, ACH transfers, and even paper checks, are slow and inefficient. This creates a need for better, more instant payout solutions, and an opportunity for the industry to transform its financial operations with cutting-edge technology. The Challenges of Traditional Payment Methods: Popular Use Cases Before diving into ways in which digital payouts can level-up a businesses’ approach to payments, let’s walk through some of the most popular use cases in which outdated payment methods are creating bottlenecks or inefficiencies. Customer Refunds Travel industry customers often need to be refunded for charges or reservation holds on their accounts. Currently, the refund process uses an ACH transfer and can take anywhere from 5-7 business days, and in some cases, up to two weeks, leading to customer frustration and lowering overall satisfaction. This delay is exacerbated if the customer’s card on file has expired, necessitating a manual check to be mailed, which is both time-consuming and risky. Employee Tip Payouts The reliance on ACH payments and scheduled payroll dates for employee tip payouts is another frustrating bottleneck. As customers are opting for cashless tipping and can now pre-pay tips, tip on site, or send a tip from a targeted follow up email, these electronic methods can lead to payout delays, especially for tipped employees who once relied on day-of cash payments. Vendor Payments It is not uncommon for tour operators to manually deliver checks to hotels to pay commissions. When reservation platforms handle these transfers, they often charge facilitation fees as high as 20% of the ticket price. Instant payment solutions can automate and expedite these transactions, reducing costs and eliminating unnecessary delays. The Opportunity of Instant Payments Considering the delays and inefficiencies of traditional payment methods, instant payments present a real opportunity revitalize and revolutionize payments within the hospitality space, leading to a variety of benefits and applications: Enhanced Customer Experience By integrating instant payout solutions, businesses industry-wide can significantly improve the customer experience, whether they’re working with tipped employees, customers, or vendors. Across all these cases, payments can be processed and delivered in minutes rather than days, alleviating frustration and enhancing loyalty. Improved Operational Efficiency For employees, instant tip payouts mean they receive their earnings immediately, which is especially beneficial for those who live paycheck to paycheck. This not only improves employee satisfaction but also streamlines payroll operations. In fact, companies like Kickfin, in the tipping space, have already implemented instant payouts. Cost-Effective Vendor Payments Automating vendor payments through instant payout solutions can save time and reduce costs. Ingo Payments, for example, facilitates instant, automated payments directly to vendors, eliminating the need for manual check delivery and high facilitation fees. This results in more efficient financial operations and better relationships with vendors. Streamlined Travel Insurance Payouts Travel insurance payouts can also benefit from instant disbursement services. Quick, reliable payouts mean customers receive their insurance funds without unnecessary delays, enhancing their overall experience and trust in the service and creating more opportunities to grow customer loyalty. Boosting Customer Incentives and Rewards Programs Instant payments can boost the effectiveness of loyalty programs and promotional incentives, such as: Loyalty Programs: Funds for loyalty programs or customer rewards can be disbursed instantly, making them readily available for future bookings and enhancing customer engagement. Promotional Incentives: Instant promotional incentives or cashback offers can be credited directly to customers’ accounts, encouraging repeat bookings and increasing customer satisfaction. For the above use cases and more, Ingo Payments offers a PCI-compliant iFrame solution to securely capture and process the payment information, all within a travel operator’s own digital experience. Ingo also offers a fully outsourced payment experience with our white-labeled customer engagement platform. In the full-service scenario, Ingo handles customer notifications on the client’s behalf when a disbursement is ready. The recipient is brought into a secure portal to authenticate, provide their current payment information and choose to receive funds instantly to any account they choose. These integration options ensure that travel tech companies have the flexibility they need to leverage the power of instant payouts. Conclusion The travel and tourism industries stand to gain significantly from the adoption of a suite of instant payout solutions. By addressing the inefficiencies of current payment methods, the industry can enhance financial transparency and speed, benefiting customers, employees, and vendors alike. Many companies throughout the hospitality industry, including companies like 7Shifts, are leading the charge by offering digital payout solutions. Ingo Payments offers the technology and expertise to facilitate these changes, providing a streamlined, efficient solution for the industry’s financial operations, proving that integrating instant payments is not just an upgrade—it’s a transformation that can lead to greater efficiency, lower costs, and higher satisfaction across all stakeholders. As the travel and tourism industries continue to evolve, embracing instant payouts will be a key to staying competitive and delivering superior service across the board.
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.
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.