NEW YORK--(BUSINESS WIRE)--The U.S. labor force has changed dramatically in recent years, with larger numbers of independent contractors and temporary workers than ever before. Today, more than one in three Americans are part of the so-called “gig” economy,1 and this growing workforce expects to be paid when the job is done, rather than weeks, or even days, down the road. In response to this growing demand First Data (NYSE: FDC), a global leader in commerce-enabling technology, today announced the availability of its “Disburse-to-Debit” solution, a new, low-cost payout option for businesses that delivers funds directly to a debit card.
While participants in the gig economy, such as ride sharing platforms or home rental marketplaces, are beneficiaries of real-time debit payouts, businesses that produce high volumes of consumer payouts – such as insurance claims, rebates, refunds, commissions, and more – can also differentiate themselves with this solution.
In the case of people waiting for insurance claims, seeking government assistance, or facing a major natural disaster, the timeline for a check to be cut, mailed, and cashed is little help to a person’s immediate needs.
“Whether it’s a driver for a ride-sharing company, or a small business owner needing disaster relief following a hurricane, our new technology allows businesses to make payments in real-time,” said Dan Charron, Executive Vice President, Head of Global Business Solutions for First Data. “This new solution eliminates the friction associated with traditional disbursement methods, delivers speed and simplicity to the consumer, and reduces the cost of payment acceptance.”
Unlike traditional disbursement methods, First Data’s Disburse-to-Debit technology offers instant “push” payments across a broad range of debit networks. The solution employs a single connection offering access to domestic and international debit networks to deliver funds in real-time. Disburse-to-Debit also works with prepaid offerings like First Data’s Money Network® service, which provides a convenient prepaid debit card option for consumers without traditional bank accounts. Funds are distributed at a lower cost thanks to First Data’s industry-leading debit routing technology.
“The digitization of commerce has caused consumers, including tech-minded individuals working in the gig economy, to expect convenience in every interaction,” said Ashish Bahl, Head of Global Debit Solutions at First Data. “The ability to instantly push payments is a powerful point of differentiation for companies hiring ‘gig’ workers because, ultimately, it streamlines the pivotal point of interaction in the relationship – getting paid for each gig.”
Bahl formerly was the CEO of Acculynk, a technology company with innovative debit capabilities that First Data acquired earlier this year. Acculynk strengthened First Data’s leading digital and eCommerce solutions, which include least-cost debit routing technology that allows merchants to process online debit payments through the most cost-effective debit network available.
About First Data
First Data (NYSE: FDC) is a global leader in commerce-enabling technology, serving approximately six million business locations and 4,000 financial institutions in more than 100 countries around the world. The company’s 24,000 owner-associates are dedicated to helping companies, from start-ups to the world’s largest corporations, conduct commerce every day by securing and processing more than 2,800 transactions per second and $2.2 trillion per year.
1 http://money.cnn.com/2017/05/24/news/economy/gig-economy-intuit/index.html
