One of the partnership agreement’s primary goals between Paypal Holdings Inc (NASDAQ: PYPL) and Fiserv Inc (NASDAQ: FISV) is to provide gig economy workers with a chance to transfer their paycheck payments directly to their Venmo or PayPal wallet. As the world grows more accustomed to digital wallets and the like, the partnership between these two fintech corporations is concentrated on providing businesses with new marketing opportunities and consumers with faster payout systems.
Fiserv’s Global Head of Payments, Nandan Sheth, told CNBC that this system could be used to support 1099 (independent contractor) payments for gig economy laborers, federal government tax refunds, insurance claim payments, and so forth. He continued to say that the system is a combo of real-time payment scenarios and convenience.
PayPal’s SVP of Partnerships, Dan Leberman, said that the over 400 million active accounts on both Venmo and PayPal would help them provide companies with more cost-effective, easier and faster ways of sending money and making payments. He claimed that the integration of this system is the next product from their long-standing Fiserv partnership and that it offers substantial value to companies that want to transfer money directly to their customers.
FanDuel, Lyft and State Farm are the current Fiserv clients who have immediate access to the technology. Fiserv says that it’s actively discussing how it can enable direct payments to both Venmo and PayPal. State Farm and Fiserv recently announced that they would partner together to directly transfer insurance claim payments into client bank accounts.
Suppose consumers take to making business-to-consumer payouts on platforms such as Cash App, PayPal, and Venmo. In that case, this partnership agreement might just be able to greatly impact how consumers continue to bank.