Author: Brent Watters

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Elevating Commercial Banking: How Credit Unions Can Compete with Flexible Prepaid Technology

Credit unions represent a counterpart to conventional banks, and the banking industry’s recent shakeup has created an opportunity to gain new commercial business, especially the 29 million SMBs, with expanded business payment service offerings.

Speaking of opportunities, SMBs are shifting considerably away from large banks – which hold 45% of the market share, and 66% of business owners say their primary bank doesn’t get them. Additionally, B2B is the largest payment segment globally. In 2018, Goldman Sachs estimated B2B payments at $127 trillion. More recently, Credit Suisse pegged B2B payments at $125 trillion out of a $235 trillion total market. This outweighs the B2C payments market, estimated to be 52 trillion.

The demise of several banks in the spring has resulted in some SMBs reassessing their banking relationships beyond merely credit risks, and this is where credit unions can leverage their reputation for trustworthiness and commitment to community values to attract commercial clients. 

Additionally, the shift allows credit unions to offer access to cutting-edge, self-service commercial prepaid products as an embedded payment solution that can grow in tandem with their SMB clients and make it easier for businesses to conduct expense management and payouts.

Unlike large banks, credit unions can swiftly adapt to the evolving needs of businesses and tailor their prepaid card programs accordingly. This agility is a key selling point for credit unions positioning themselves as dynamic, commercial payment partners for businesses.

Personalized Service and Local Focus

One of the core strengths of credit unions is their commitment to personalized service and community focus. They can emphasize their local presence and understanding of the unique challenges facing businesses in their community. Commercial clients often appreciate the accessibility and personal touch that credit unions can provide, which may be lacking in larger, impersonal banks.

Seamless Integration with Business Services

To compete effectively, credit unions can integrate prepaid cards seamlessly with other business services they offer. This includes aligning prepaid cards with business loans, lines of credit, and merchant services. By offering a comprehensive suite of financial solutions, credit unions become one-stop destinations for all of a business’s financial needs.

The first step towards success lies in recognizing that businesses have unique financial requirements. Credit unions can craft prepaid card solutions that cater specifically to these demands. Whether it’s facilitating employee expenses, managing petty cash, or optimizing cash flow, prepaid cards can be customized to align with the varied financial goals of commercial clients.

Seamless Expense Management

Managing expenses is a critical aspect of any business’s financial health. By offering prepaid cards equipped with integrated expense management tools, credit unions empower commercial clients to effortlessly track and categorize their spending. This streamlined process not only reduces administrative burdens but also provides invaluable insights into financial management.

Flexible Funding for Businesses

Flexibility is the name of the game in the commercial world, where cash flow can make or break a business. Credit unions can provide prepaid cards that allow businesses to load funds as needed, ensuring access to working capital whenever required. This flexibility enhances financial stability and bolsters businesses’ confidence in their credit union partner.

The Loyalty and Rewards Advantage

Introducing loyalty or rewards programs tied to prepaid cards can be a game-changer for businesses. Small businesses can easily develop employee, channel partner, vendor, and customer incentives and reward schemes that enable them to strengthen their relationships. In return, this not only incentivizes continued usage but also deepens the loyalty between the credit union and its commercial clients.

Risk Management and Informed Decision-Making

Prepaid cards offer a window into a business’s financial activity. Credit unions can use this data to assess the financial health and stability of their commercial members, informing lending decisions and risk assessment. This proactive approach to risk management safeguards both the credit union and its clients.

Collaborative Teamwork

Credit unions can explore collaborative partnerships with fintech companies like B4B Payments. These partnerships can help credit unions launch and optimize their prepaid card offerings with advanced technology and innovative features. By staying on the cutting edge of fintech, credit unions can compete with banks on the technological front.

B4B Payments can help credit unions quickly and easily launch and enhance their prepaid commercial card programs and compete with banks offering embedded payment solutions. Our end-to-end flexible and scalable prepaid commercial card issuing platform offers easy set-up and onboarding so commercial divisions can quickly enable businesses to self-manage the instant issue of physical and virtual Visa® cards for travel, entertainment, supplies, internal department and project spending, incentives and rewards.

We’ve Made It Simple 

Our robust APIs integrate seamlessly into existing bank systems and make it easy for your institution to offer a simple method for your credit unions to deliver businesses a valuable payment solution that also streamlines payments and gains them greater transparency and reporting capabilities.

With easy set-up and onboarding, commercial operations will not need additional staff or deal with lengthy and burdensome training and processes to begin enabling companies to self-manage the instant issue of physical and virtual Visa® cards for travel, entertainment, supplies, internal department and project spending, incentives, and rewards.

Credit unions have a competitive edge in the commercial banking space when armed with well-designed prepaid card programs. By capitalizing on their flexibility, commitment to personalized service, competitive pricing, and strategic partnerships, credit unions can effectively compete with banks for commercial clients. The key lies in understanding businesses’ unique needs, providing innovative solutions, and showcasing the distinct advantages credit unions offer as financial partners.

For more information, visit B4B Payments Credit Union Information Page.

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Breaking Barriers: How Digital Payment Solutions Increase Diversity in Clinical Trials

Clinical trials are the backbone of medical research, providing crucial insights into the efficacy and safety of new treatments and therapies. However, one persistent challenge that plagues the field is the under-representation of diverse populations in these trials. This lack of diversity not only hampers the validity of study results but also limits the applicability of findings to broader communities.

Vulnerable populations, including those who are rural, poor, unbanked, under-educated, or chronically ill, often face barriers to participation due to concerns about payment methods or a lack of trust in the system. The solution to these challenges might be embracing modern and efficient digital payment solutions.

The Impact of Under-Representation

Under-representation in clinical trials has far-reaching consequences that extend beyond research. When certain demographic groups are left out, study results may not accurately reflect how a treatment will perform in the real world.
There are even cases where sample sizes are often too small to permit assessment of treatment efficacy within particular subgroups.

This can lead to less effective or unsafe treatments, ultimately perpetuating health disparities. Additionally, the lack of diversity in clinical trials can hinder the development of personalized medicine, where treatments are tailored to individual genetic and environmental factors.

Here are some recent informative headlines that point to the issue:

Barriers to Participation

Vulnerable populations often face unique barriers that discourage their participation in clinical trials. Payment methods are one such barrier. Many individuals, particularly those from underserved communities, may not have traditional bank accounts, making it difficult to receive compensation for their participation. A World Bank 2021 report stated more than 1.4 billion people worldwide remained unbanked. This is especially true for rural or remote populations with limited banking infrastructure. Moreover, concerns about the security and transparency of payment systems can deter potential participants who fear their personal information might be compromised.

Figure: Accessibility to clinical industry clinical trials, calculated as number of clinical trial sites per 1 million in population relative to the U.S. levels (U.S. = 100%). LongTaal Clinical Trials Landscape dashboard/clinical Trials Indices. Source VIARES Academy for Clinical Research. Source ClinicalLeader

Building Trust and Accessibility with Digital Payments

Digital payment solutions can transform the landscape of clinical trial participation by addressing some of these barriers head-on. One of the key advantages of digital payments is their accessibility. Mobile phones are increasingly prevalent, even in low-income or rural areas, providing participants with a secure platform to receive compensation. Digital wallets or prepaid cards can be quickly loaded with the agreed-upon compensation amount, ensuring participants can access their funds without needing a traditional bank account.

Reloadable, prepaid debit cards are convenient, allowing for instant processing and automated differentiation between taxable and tax-exempt expenditures. These digital solutions also foster trust through their transparency.  Participants can track their payments in real-time via mobile or desktop devices, alleviating concerns about the legitimacy of the payment process. The use of secure encryption protocols and stringent data protection measures further bolster the security of these payment methods, assuaging fears about personal information being compromised.

Driving Inclusivity Through Efficiency

Efficiency is another hallmark of digital payment solutions. Traditional payment methods, such as checks, can be time-consuming and subject to delays. This is especially problematic for individuals who may be living paycheck to paycheck or facing financial instability. Digital payments eliminate these delays, ensuring that participants receive compensation promptly. This demonstrates respect for participants’ time and contribution and removes a significant logistical barrier that might otherwise discourage participation.

A Shift Towards Inclusivity

Adopting digital payment solutions represents a crucial shift towards inclusivity in clinical trials. By removing the barriers posed by payment methods and enhancing transparency and efficiency, these solutions can make trials more appealing and accessible to a broader spectrum of participants. Vulnerable populations can now participate without worrying about payment delays or security breaches, contributing to a more diverse and representative participant pool.

In the pursuit of medical advancements, clinical trials must reflect the diversity of the populations they aim to serve. Under-representations can compromise the validity and applicability of study results, perpetuating health disparities. Digital payment solutions like prepaid debit cards have the potential to break down barriers and increase diversity by providing accessible, transparent, and efficient methods of compensation. As the field of medical research continues to evolve, embracing these solutions could be the key to fostering inclusivity and driving forward healthcare breakthroughs that benefit everyone, regardless of their background or circumstances.

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Innovative Payments Solutions Streamline the Administrative Burden of Clinical Trial Participant Compensation

Clinical trials are crucial in advancing medical knowledge and improving patient care. However, the administrative tasks associated with managing participant compensation are often a significant burden for researchers and site personnel. According to recent studies, 44% of site personnel engaged in accounting also juggle other study-related responsibilities. This administrative workload can detract from the scientific focus of the research process. Fortunately, there are innovative solutions to address these challenges and streamline the compensation process.

Leveraging Digital Payment Methods

Adopting digital payment platforms is one of the most promising advancements in simplifying clinical trial participant compensation. Traditional methods of compensation disbursement often involve manual paperwork, which is not only time-consuming but also prone to human errors. By embracing digital payment platforms, researchers can automate the compensation disbursement process, reducing the need for extensive paperwork. Digital payment platforms offer secure and seamless compensation transfers, ensuring that participants receive their compensation in a timely manner. This enhances participant satisfaction and frees up valuable time for researchers and site personnel. Instead of allocating significant hours to processing payments, these individuals can redirect their efforts towards more critical aspects of the trial.

Moreover, prepaid debit cards have become a convenient and flexible payment method for clinical trial participants. These cards can be loaded with compensation funds and used just like regular debit cards, issued instantly as either a virtual or physical card, and provide participants with a hassle-free way to access their funds. Prepaid debit cards offer participants the freedom to choose how and when to use their compensation. This flexibility enhances participant satisfaction and encourages continued engagement and participation in the trial.

Time and Cost Savings

One of the most compelling advantages of digital payment platforms is the potential for significant time and cost savings. Research indicates that implementing such platforms can save up to 15 minutes per participant, considerably reducing administrative burden. These time savings compound as the number of participants in a clinical trial increase.

Researchers can devote more attention to study design, data analysis, and patient care by reallocating these saved hours. Furthermore, the cost savings associated with transitioning to digital payment platforms should not be overlooked.

By digitizing payments, administrators can significantly reduce manual paperwork, printing, and postage costs, leading to considerable financial benefits throughout a clinical trial. These cost savings can be reinvested into other research areas, contributing to the overall success of the study.

Automated Payment Tracking Systems

Automated payment tracking systems have gained traction further to improve the transparency and efficiency of the compensation process. By automating payment tracking, researchers can identify and promptly address discrepancies or issues. This proactive approach prevents potential delays in compensation disbursement and maintains participant trust throughout the trial.

These payment systems provide real-time monitoring of compensation disbursement, allowing researchers and site personnel to have a clear overview of payment statuses. Real-time tracking minimizes the risk of errors and ensures accurate record-keeping, thus enhancing transparency and compliance.

The administrative burden of managing participant compensation in clinical trials has long been a challenge for researchers and site personnel. However, the landscape is changing with the emergence of innovative payment solutions, such as digital payment platforms, prepaid debit cards, and automated payment tracking systems.

Solutions like B4B Payments’ instant prepaid card issuing platform streamline the compensation process, offer substantial time and cost savings, enhance participant satisfaction, and improve trial transparency. Advanced, easy-to-use payment platforms allow researchers to focus more on their work’s scientific aspects, drive progress in medical research, and ultimately improve patient care.

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Optimizing Payment: The Key to Clinical Trial Participant Satisfaction and Retention

Clinical trials are an essential cornerstone of medical research, enabling the development of new treatments and therapies that can revolutionize healthcare. However, Clinical Research Organizations (CROs), sponsors, and independent trial sites often face significant challenges in recruiting and retaining participants, leading to delays and increased costs.

One crucial factor that can address these bottlenecks is the optimization of participant payment processes. By providing timely and seamless compensation,  researchers can incentivize participants to enroll and ensure their commitment throughout the trial.

The Importance of Participant Recruitment and Retention

Participant recruitment and retention are notorious hurdles in the world of clinical trials. Lengthy recruitment processes and high dropout rates can lead to delayed trial completion, increased expenses, and compromised data accuracy.

The reasons for these challenges are multifaceted, ranging from stringent eligibility criteria to the burden of participation. One effective strategy to address these issues lies in optimizing the payment experience for participants.

Seamless Compensation as an Incentive

One of the primary reasons individuals consider participating in clinical trials is the compensation offered for their time, effort, and potential health risks. In one survey, 39% of participants reported compensation as their primary motive for participating in clinical trials.

This percentage can go up to 90% for healthy volunteers. Optimizing payment processes is an effective way to incentivize participants to enroll and actively engage in the trial. The amount of payment for participation should not be overlooked, as this recent headline points out: Paying research participants — a lot — may be a key to increasing diversity in studies.

Timely, reliable, and hassle-free compensation fosters a sense of value and appreciation, boosting participants’ motivation to actively engage in the trial, follow protocols, attend appointments, and provide accurate data.

Source: TrialFacts

An Easy Way to Streamline Payment Processes

Efficient payment solutions, such as B4BPayments’ prepaid cards, are pivotal in streamlining payment processes for clinical trial participants. Prepaid cards offer a convenient and secure way to deliver compensation promptly, eliminating manual processes and the delays associated with traditional payment methods like checks or bank transfers.

The global prepaid card market, projected to reach $4.1 trillion in transaction value by 2026, according to Juniper Research, attests to the increasing demand for this convenient form of payment. This growth is primarily driven by emerging markets, where the reach of traditional banking systems may not be as extensive.

We have made it easy to overcome the burdens of administrative tasks, empowering sites to have more time to focus on research. B4B Payments’ all-in-one, intuitive management platform gives administrators full control and the power to instantly issue or schedule and automate the issuance of reloadable Visa prepaid physical and virtual cards globally with the agreed-upon compensation amount, for single or multiple trials and set milestones.

Administrators gain a new level of transparency in tracking each account and payment made, B4B Payments is a technology-first company, and we have designed an easy-to-use platform that flawlessly integrates into existing accounting and program management software.

Moreover, prepaid cards reduce the necessity for trial participants to have a bank account, use currency exchanges, or wait to receive checks in the mail. Trial participants can receive funds immediately for incentives, completion of milestones, and reimbursements. With increased consumer adoption of digital payments, cardholders can use a friendly mobile application to easily add their cards to highly used Apple or Google wallets for seamless mobile payments and manage their cards.

By adopting a simple, digital prepaid approach to participant compensation, operators can foster inclusion and diversity and ensure that participants receive their compensation without unnecessary friction, which can significantly impact their overall trial experience.


Impact on Retention Rates

The goal of optimizing payment processes is to improve participant retention rates. When participants have a positive payment experience and feel well compensated for their time and efforts, they are more likely to stay enrolled in the trial until completion. Studies have shown that participants who are paid promptly and without inconvenience are 2.5 times more likely to complete the required clinical trial steps than those who face payment-related challenges.

Higher retention rates translate to more accurate and comprehensive data collection, which is vital for drawing reliable conclusions from the trial. Reliable data is essential for gaining regulatory approval, advancing medical knowledge, and bringing new treatments to market. By prioritizing payment optimization, researchers can significantly contribute to their clinical trials’ success and healthcare’s overall advancement.

Optimizing payment processes is a critical yet often overlooked aspect of ensuring the success of clinical trials. As the healthcare industry continues to evolve, prioritizing payment optimization can be a game-changer in achieving successful clinical trials that drive meaningful progress. Contact B4B Payments to learn how we can help optimize the trial experience.

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Insurance Companies Gain Competitive Edge with Prepaid Cards | B4B Payments

Increased demand by consumers for faster payments makes prepaid cards a strategic choice for insurers looking to gain an edge

The competitive landscape between insurance companies continues to be fierce as new technologies and digital-first entrants penetrate the marketplace. A significantly growing area of competitive differentiation that has come into focus is the ability of insurers to provide payment options and instant payments.

Digitally connected customers are seeking carriers providing instant and same-day disbursements. The change in consumer behavior and expectations has paved the way for more insurers to leverage instant issue and reloadable prepaid cards as a simple and cost-effective means of growing and retaining their customer base. Additionally, using these products is one key step companies are using to prevent the loss of market share to so-called “digital born” competitors.

The delays between filing a claim and receiving reimbursement can be frustrating for insured individuals. Without the funds to pay for things like repairs or medical bills, policyholders may need to use their savings – or worse yet credit cards – until an insurance payment is made.

However, by using prepaid insurance cards, insurers can immediately provide the necessary financial support, reducing the pressure on both you as the insurer and your customers while significantly simplifying claims processing.

In a recent study by PYMNTs , when given the option, consumers chose instant payouts 23% of the time, followed by its closely related cousin, same-day bank account transfers, at 21%. These choices were far and away favorites compared to checks at 12% and cash at 7%.

Prepaid cards present carriers with the opportunity to eliminate manual processes and greatly reduce the time and cost associated with cutting checks, including printing, postage, and replacement costs. Should a check go missing, issuers may have to take on the cost of stopping payment, and if recurring payments are required, the time and cost associated with doing so add up quickly. Beyond the time it takes to get a check, recipients, who may need funds urgently, must wait to use the funds after making a deposit and for the check to clear.

A digital, prepaid approach to disbursements provides an enhanced customer experience and reduces costs associated with service calls. Customers want to know where their checks are, and in today’s market, they are quick to make their frustrations known on social media.

Additional benefits also include:

· Minimizing fraud issues. If a customer misplaces or loses a card, an insurer can quickly cancel the card and instantly reissue a card.

· Avoiding fees and fines through better compliance with state “prompt pay” requirements.

· Delivering funds domestically and cross-border safely and securely.

· Provide funds to unbanked or low-banked customers.

· Use physical or virtual prepaid cards to make multiple claim disbursements on a reloadable card (e.g., worker’s comp/disability) or make an instant one-off disbursement.

· Create physical and virtual cards with your company’s logo to promote your brand and attract new customers.

services are under pressure to provide card services for versatile use within their consumer communities. 

Using prepaid cards for insurance claims changes how funds get distributed to the insured. Otherwise, the process of completing an insurance claim is like the traditional filing method. Once a claim is approved, an insurer can act as its own card issuer.

· Prepaid cards can be provided to customers with no funds added to the cards until a claim is filed.

· Adjusters can provide insurance carriers with a prepaid card, and the adjuster can load cards instantly based on their assessments. If repairs exceed the initial assessment, the agency or the adjuster can instantly add more funds.

· Insurers can instantly issue a virtual card that recipients can add to a digital wallet and use immediately, especially when needed to support emergencies.

In each approach, a disbursement can be made quickly rather than rattling around internal systems and processes.

Card recipients can use the card at an ATM to withdraw cash, pay bills in person, transfer funds to their bank account, or make purchases from online and brick-and-mortar merchants. This provides customers with total flexibility to address their needs better.

By adding prepaid cards as a payment option, insurers can stand out from competitors and go beyond protecting them financially. B4B Payments has built an end-to-end, embedded payment offering, that offers insurance companies everything needed to develop their own embedded finance offering, from flexible payment accounts to instant payments on easy-to-use prepaid cards and seamless APIs that easily integrate into existing systems.

If your company is looking to streamline its disbursement processes, gain the needed competitive advantage, and deliver immediate payments to your customers, contact us for more information or to request a short demo.

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Out with the Old: A Better Way to Manage Ad Buying with Prepaid Cards

Advertising and marketing agencies can struggle to manage budgets and gain greater control over ad spending while working to meet the demands of multiple clients. 

The ad purchasing challenges agencies face commonly stem from the use of credit cards and legacy payment processes (e.g. bank wires). Using credit cards for managing ad campaigns creates the chance of overspending and predefined credit limits being hit unknowingly, resulting in the account being frozen and campaigns jeopardized. The same holds true should a credit card be reported for suspected fraud or as being lost or stolen. In such cases, the credit card account must be frozen, with few ways to resolve issues until a replacement card is presented. 

The risks are higher for agencies using a single, company-wide credit card to manage multiple client accounts. Some agencies have painfully learned that single credit card use opens the door to fraud and other issues due to the challenge of tracking various transactions on a single account. 

In any of these scenarios, an issue with a credit card can challenge payment obligations and affect an agency’s relationships. 

A Simple and More Efficient Approach to Account Management

In the digital age of doing business, more and more agencies are using virtual prepaid cards (accounts) to overcome long-standing issues tied to traditional payment methods. These advanced payment products offer a more flexible and effective way to manage accounts, simplify ad buys, improve transparency, remove tedious reconciliation processes, and present real-time reporting and payments.

Prepaid virtual accounts are just like debit or credit cards but are pre-funded account-based payment solutions that use a secured 16-digit number instead of a physical card. Virtual cards work just like traditional cards but without going through the process of ordering cards and waiting on the production and shipping of a physical card. 

Additionally, virtual card numbers can be programmed with custom parameters such as expiry dates, spending limits, and category information. Credit cards do not allow for the same level of customization or caps and require more time-consuming due diligence to ensure spending stays within budgeted amounts. 

Virtual prepaid accounts can be created instantaneously by the agency and used immediately. An agency can create as many virtual card accounts as they need for their business, and there is no connection with an agency’s business banking account. These self-funded solutions enable expense managers to easily decide the amount of funds allocated to each virtual card and make it easy to automate media buys and handle affiliate commissions and payables to vendors and suppliers.

Conveniently, virtual accounts can easily be reloaded in real-time at any point or set for automated, scheduled reloads. If needed, a virtual account can be frozen immediately, and a replacement account can be created instantly, giving agencies the ability to scale security to the maximum. 

Control At Your Fingertips

B4B Payments’ all-in-one, intuitive management platform gives agencies full control and the power to instantly create multiple virtual card accounts and allocate sums efficiently for different teams, campaigns, and accounts. Agencies gain a new level of transparency in tracking each account and payment made, alleviating issues associated with account reconciliation. 

The interfaces typically used for managing company credits are often clunky and do not seamlessly integrate with in-house accounting software. B4B Payments is a technology-first company, and we have designed an easy-to-use platform that flawlessly integrates into existing AR and accounting software.

Additionally, you may be interested in reading our Case Study to learn how B4B Payments partners with Imperious Media to streamline media buying and standardize reconciliation.

To find out how our solutions can help your company, contact us today!

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Digital Payments Bringing Value to Travel and Tourism Rebound

Travel and tourism are rebounding in the U.S. and abroad, and digital payments are being used to support renewed growth, offer added value, and streamline payments to vendors and suppliers.

After the exceptional drop in 2020 and 2021, international tourism continues its gradual recovery in 2022 due to the easing of travel restrictions. According to the World Tourism Organization (WTO), international tourist arrivals more than doubled (+130%) compared to January 2021, growing by 18 million. According to the organization, the increase in the number of arrivals is the same as in the whole of 2021 over 2020. Meanwhile, the WTO reported that a rapid rise in domestic travel and tourism, especially in the U.S., is driving the recovery.

Despite the hard impact Covid has had on the industry, the pandemic has created a new category of domestic and international travelers deemed the “untethered worker” or “laptop lugger” that seeks to mix work and vacation. This growing group tends to be younger, aims to take longer trips, and is a higher-income group, according to a recently published study by Delloite. Additionally, this group is highly digital and actively seeks the ease and convenience of digital payments.

Another bright spot for travel and tourism is that travelers plan to spend more this year on longer trips and more expensive accommodations, according to a Sky Scanner travel agency survey of 4000 travelers in the U.S., U.K., Australia, and Germany.

Specialty segments are also on the rise, such as student, health and wellness, cultural and medical tourism, which includes patients traveling domestically and beyond international borders for surgeries and medical treatments. A recent analysis by Market Data Forecast indicates the U.S. medical tourism market alone will grow from the current (2022) $8.3 billion to $19.96 billion by 2027. This U.S. segment may also experience a significant increase due to the recent overturn of the landmark 1973 Roe v. Wade ruling that recognized a woman’s constitutional right to an abortion and legalized it nationwide. A growing number of companies are offering financial support (‘Abortion Access’) to aide women employees in states banning abortion rights and are left with the only option of traveling to abortion-permissive states.

Delivering additional value to travelers and tourists

With a rebound underway, digital payments, including prepaid cards and digital wallets, offer a powerful and highly flexible solution that travel and tourism businesses can use to be competitive and improve efficiencies for paying vendors and suppliers.

The increased cost of travel due to rising fuel prices makes travelers more concerned with budgeting than other challenges, according to Delloite. Businesses can offer prepaid cards to provide additional value to budget-minded travelers who want to save and manage their money. Using B4B Payment’s prepaid travel cards and mobile/online application, cardholders can quickly load funds onto their cards, track spending, and even upload receipts. B4B Payments makes it simple for cardholders to add a physical or virtual card to a mobile wallet.

Offering prepaid cards also ensures travelers avoid the hassle of carrying cash. A prepaid card is much safer than carrying cash when traveling. Should a physical card be lost or stolen, B4B Payments enables cardholders to quickly deactivate their card and have funds painlessly moved to a new virtual or physical card.

Additionally, businesses can offer prepaid cards for particular use cases, such as stranded passengers or emergency payments, and offer travelers an incentive or reward program.

An improved service provider experience

The value prepaid cards and digital payments offer travel and tourism businesses value beyond supporting clients. Travel and tourism operators are reliant on vendor and supplier relationships. It is no secret that prompt payment helps companies be preferred customers and retain high-performing service providers. Ultimately this can translate to a better customer experience and a more significant opportunity to scale your business.

B4B Payments eliminate the need for traditional banking processes such as wire transfers and checks or cash. Our versatile prepaid product can easily be set up for making real-time payments 24/7 to providers anywhere in the world. This highly efficient form of making payments helps businesses optimize cash flow, manage peak volumes, and prevents the need to exceed credit limits.

Additionally, savvy businesses can easily use digital payments to enhance vendor relationships by offering channel incentives and rewards.


To find out more about how B4B works with travel and tourism companies, get in touch with us.


References:

SkyScanner 2022 Travel Survey

World Tourism Organization

Deloitte 2022 Summer Travel Survey:

Market Data Forecast:

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Case dismissed: Digital payments outperform checks in class action disbursements

Class action lawsuits can take years to negotiate and for courts to approve a final settlement. Historically, managing settlement disbursements have been equally time-consuming due to labor-intensive, and costly check-cutting processes.

Digital payments are now changing the disbursement process and creating greater efficiencies for litigators, claim administrators, and payees.

The use of digital payments had lagged from the court system’s initial foray into digitizing the class action process with the adoption of the 2018 amendments to the U.S. Federal Rule of Civil Procedure, notably Rule 23(C)(2)(B). This rule allowed class-action notices to be conducted through electronic channels such as emails and social media. With growing consumer preference for electronic payments, it was only a matter of time before court systems would see electronic payment distribution in business-to-consumer legal cases as a viable option for disbursements. Today, more courts embrace digital payment options such as automated clearing house (ACH) deposits, wire transfers, and prepaid and virtual card-based payments.

Checks continue steady decline in usage

The frequency of using checks continues to be on the decline in the U.S. for consumers and businesses. According to data from the Federal Reserve, the use of paper checks amounted to 15% of transactions in 2012 and fell to 8.3% in 2019*. Visa’s unreleased Q4 2021 “U.S. Share of Wallet Report” paints a similar picture with U.S. consumers using checks only 7% of the time to make payments, down from 54% in 1996.

According to Aberdeen Strategy Research and Bank of America, the cost of cutting and managing checks is not cheap either and averages about $7 to $15. In some instances, the cost to disburse checks can reach up to $20, considering the required mailing and processing. These incremental costs add up quickly and can sometimes exceed the settlement disbursement amount. Unclaimed checks from settlement cases create issues related to unclaimed property liability from uncashed checks, which are considered funds outstanding in company ledgers. In class actions, payers must report on the settlement funds, which sometimes leads to the daunting task of tracking down recipients who have not received or cashed their checks.

Digital payments is a win for financial inclusion

Beyond the general declining value of using checks, courts have embraced digital payment as a viable option to address financial inclusion issues. Approximately 25% of U.S. households are unbanked or underbanked. In many cases, unbanked class members receiving checks are forced to pay substantial fees for check cashing services. To open a bank account simply to receive their payments, these class members would be required to open a new account and prove creditworthiness if they have not already.

Issues regarding unbanked populations have been a big challenge to legacy settlement fund distribution. In a cashless system, prepaid cards can ensure that people without bank accounts can still participate and access benefits.

Integrating digital payments enables claims administrators to offer claimants the choice of how they would like to receive payments, from direct-to-bank account options to popular virtual cards / digital wallets.

Digitizing and streamlining the fund distribution process can help create greater efficiencies for legal claims disbursements in multiple ways. B4B Payments provides an innovative and flexible digital payment solution that enables class member settlement and mass tort disbursements to be paid quickly and efficiently with virtual and physical Visa prepaid cards.

Get in touch today to find out how B4B Payments can help you make your fintech ideas a reality with our next-gen BIN Sponsorship services.


*The 2019 Federal Reserve Payments Study,” Federal Reserve