6 B2B companies using digital payments to disrupt

  • July 20 2018, 10:18am EDT

Digital payments are no longer just the bailiwick of major global initiatives. They are becoming a critical aspect of nearly every new service that providers bring to the table for merchants or financial institutions.

While mobile wallets and virtual payment cards seek firmer footing in the payments ecosystem, and multi-channel payment and loyalty options get much attention, the digital distribution of funds in near real-time is a calling card most are now seeking.

PayPal buys Hyperwallet to reach a bigger audience

PayPal is no stranger to the wants and needs of merchants. After all, it built its e-commerce empire on the premise that moving money digitally was not only possible, but highly preferable in the digital realm.

Still, PayPal continues to seek ways to move digital money faster and through more channels, and that was the impetus behind its purchase of Hyperwallet, which specializes in numerous disbursement points from cash pickup to prepaid cards, bank accounts or checks.

As much as anything, the acquisition of Hyperwallet puts PayPal in a far better position to support payments that businesses will make to consumers, contractors and other service providers.

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Visa and Worldpay partner on faster payments

Visa and Worldpay teamed up last year to offer faster settlement for merchants through their digital rails.

In partnering to deliver FastAcess Funding, Visa Direct and Worldpay (then called Vantiv) delivered funds to merchants in minutes, rather than the day or more it would take through the Automated Clearing House.

It was yet another example that small and mid-size businesses were becoming the targets of major companies looking to provide a significant boost to the bottom lines and cash management operations at those smaller operations.

First Data-Mastercard and Green Dot focus on faster payroll

First Data and Mastercard also pursued a partnership, establishing their Disburse-to-Debit gateway to allow business owners to make immediate payments to employees' or customers' debit cards.

First Data connects its payments gateway to Mastercard's MoneySend pipeline in giving an option to merchants and businesses in need of disbursements on a fairly regular basis.

In some ways, the digital money movement mirrors that of Green Dot and its SimplyPaid product, which enables Uber to pay drivers and sets up an immediate funding system for any aspect of the gig economy.

FIS plays ball

In obtaining a contract with Minor League Baseball to provide technology and process payments within the stadiums as well as within team management coffers, FIS prioritized the quick disbursement of digital funds to prepaid cards.

The financial services technology company also allowed team executives to establish a method for same-day payments to the seasonal part-time employees, thus giving those employees more incentive to show up to work each day assigned during a season.

When the work shift is completed, an employee can expect funds to be available on a card or in their bank account at that moment. Previously, those employees would come back to the stadium to pick up weekly or bi-weekly checks.

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Uber's global push for digital money

Uber has sought a e-money license in the Netherlands, and it recently partnered with PayPal to allow the Venmo P2P system to operate as a payment method for rides and to split bills on an Uber Eats order.

The company already has moved toward faster payments to its drivers in sending funds to prepaid cards, and its growing interest in how an Uber Wallet could ultimately unfold seems to be a driver for the company.

Linked2pay and Push Payments partner on instant settlement

Risk management and payments technology provider linked2pay and Push Payments partnered this year to establish an Instant Merchant Settlements service.

While many acquirers and card service providers offer merchants next or same-day settlements, linked2pay was touting its new service as one that can take place in seconds, as opposed to hours or days.

Plus, it viewed this type of digital money distribution service as one that would serve companies that do not operate during normal business hours.