A gig economy marketplace seeking to pay a creator could soon issue payouts via text message, thanks to a new platform from Visa Direct and messaging commerce company Authvia.
However, the potential applications go far beyond the gig economy. According to Authvia and Visa, the platform could allow organizations across industries to send refunds, payments, incentives, and reimbursements.
The platform expands Authvia’s TXT2PAY functionality to include real-time payouts to Visa cards in select markets. Once a recipient verifies their identity and payment details, they can receive funds by SMS directly to their Visa card.
A Critical Operation
Payouts are the lifeblood of many businesses and a critical operation across countless industries. Yet, they’ve often been deprioritized in favor of payment acceptance—especially as new payment methods have emerged.
In healthcare and insurance, this imbalance has left reimbursements and claims heavily reliant on manual, time-consuming processes.
Many of these payouts are still issued by paper check, which can delay funds for weeks. On top of that, paper checks introduce risk: they can be lost in transit, sent in error, or highly susceptible to fraud.
Where Payouts Are Prevalent
For these reasons, many companies in sectors where payouts are prevalent—including healthcare, insurance, automotive services, and the gig economy—are actively seeking ways to make the process more efficient.
This often means shifting away from checks to real-time payment methods. Not only does this reduce time spent on administrative tasks, but it can also positively impact a company’s brand. For example, a real-time payout to a gig worker could go a long way toward keeping that worker loyal and engaged.
However, there are still risks that come with real-time payments, as faster payment often mean faster fraud. SMS and other messaging protocols have been common attack channels for bad actors. There are already many SMS-based “smishing” scams where criminals attempt to manipulate users into sending their payment data or accepting a fraudulent payout.
Despite these threats, real-time payouts could revitalize many industries. This means platforms like Visa and Authvia’s will likely continue to gain traction.
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