Insurance giant State Farm is working with the payments fintech Fiserv Inc. to give customers faster payouts for car and fire claims. The company announced on Tuesday (May 11) that it was “incrementally deploying” Digital Pay, which will give its customers “speed and flexibility” in how they receive payments after claims have been reviewed and approved.
Customers who opt for a digital payout will receive funds in seconds, disbursed to their choice of debit card or bank account.
Fiserv’s digital payouts are part of the Carat “omnichannel commerce ecosystem” that delivers payments across multiple channels and devices. Using simple API access, Fiserv gives clients such as State Farm the ability “to easily access pre-integrated solutions – such as payouts – that allow businesses to imagine and realize new customer experiences,” the companies said.
“As businesses look to create positive new consumer experiences, the ability to pay out funds with the same speed and simplicity with which they are paid can be a significant differentiator,” said Nandan Sheth, head of Carat and digital commerce at Fiserv.
According to the firm’s data, Digital Pay can eliminate 60 percent of related business operating costs while reducing onboarding time. The company said it disburses more than $800 million in payouts each month “via exclusive disbursement options and direct top-tier bank connections.”
The companies predicted that digital payments will reduce payment status inquiries by 25 percent, and Fiserv said it is a feature that 70 percent of consumers want.
PYMNTS explored this topic last month in an interview with Colin Mellon, Fiserv’s senior vice president of healthcare and insurance solutions. “The pandemic highlighted the lack of digital engagement tools that healthcare providers were utilizing, despite the fact that many of these solutions have been around for years,” Mellon said.
Suddenly, healthcare saw a massive shift to digital patient experiences away from in-person visits, which created the need for things like electronic scheduling, digital statements and accounts payable/receivable automation. “Personally, I’m excited about the transformative steps that were taken during the COVID environment, and where that will lead us in coming years,” Mellon said.
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