Image source: Fiserv
On Wednesday, the fintech companies announced a new partnership that will offer companies a fast, easy and cost-effective way to send money to the over 400 million active accounts on the PayPal and Venmo platforms via Fiserv’s Carat service.
Launched in November 2020, Carat generated $2.5 billion in payment volume during the first half of 2021.
Nandan Sheth, global head of payments at Fiserv, told CNBC the partnership brings together “convenience and real-time payment experience” for the consumer.
“The use cases that this can support are a 1099 (independent contractor) payment for a gig economy worker, a claim payment for an insurance company, a tax refund from the federal government and more,” he added.
Fiserv already has partnerships with Lyft Inc, State Farm and FanDuel, that offer expedited payments to drivers, insurance payouts and sports bet disbursements, CNBC noted.
"It’s really interesting with ride-share, drivers can literally get paid after the ride,” Sheth said. “The benefit the company gets if they use the Venmo rails is the logo of that company is embedded in the payment. It appears on the user's social graph with a message. It gives brands an opportunity to get in front of the Venmo audience. It’s a two-part value proposition.”
Dan Leberman, senior vice president of partnerships for Paypal, said in a statement that the offering is “the next step in our long-standing partnership with Fiserv and will provide substantial value to enterprises that need to send money directly to customers.”
The companies first collaborated in April on a system that enables PayPal and Venmo to accept payment through QR codes.
Source: Equities News