Of Special Interest
11th May 2012
Obopay near real-time disbursements to pre-paids
A Visa and Obopay JV will allow corporate accounts to disburse funds to Visa prepaid cards near real time. The card can then be provided to a payee. Visa see relevance to many organisations including insurance, payroll, rebates, incentives, business expenses and government disbursements, Adding that the method can be particularly valuable in situations in which recipients have an immediate need for funds.
The new offering is available immediately as part of Obopay Disbursements. With Obopay Disbursements companies can disburse funds using digital payments in place of issuing physical checks or cash, allowing for more timely disbursement of funds, dramatically reducing the employer's costs and increasing security, convenience, and recipient satisfaction. With the addition of Visa prepaid cards, recipients don't have to wait for and then cash a check or handle large amounts of cash. The solution also enables funds to be disbursed via the PIN debit and ATM networks to which Obopay is connected, as well as via ACH.
"By introducing a Visa prepaid card solution, Obopay offers near real-time disbursement capabilities that allow our customers to avoid the time delay of issuing cash or check," said David Schwartz, vice president of product and corporate marketing for Obopay. "Adding Visa prepaid cards to Obopay Disbursements enables our partners to send funds to any consumer in the U.S. at dramatically lower costs compared to issuing checks while they can also greatly increase the satisfaction of customers."
"The agreement with Obopay aligns with Visa's vision to accelerate the shift to electronic payments, extending the benefits of digital currency to more people and making disbursements more convenient, secure and reliable," said Brian Triplett, head of North America prepaid products, Visa Inc. "Today, many businesses are using Visa prepaid cards to reduce costs and exposure to check fraud, while creating a better experience for disbursement recipients, including those who do not have access to checking accounts."