Introducing Payouts: send refunds and settle payments in seconds
We built Payouts to take the pain out of paying people at scale.
Every time you pay a customer, it's an opportunity to keep them loyal. Whether it’s customers requesting refunds, users withdrawing their winnings or sellers accessing their earnings – payouts should be instant and easy. But systems for sending outgoing payments are siloed and seriously slow. The compliance is over-complicated, the experience is fragmented and funds can take days to settle — that’s if they don’t get lost completely.And that’s not really good enough, so we’ve built to take the pain out of paying people.TrueLayer lets you achieve a great customer experience by enabling instant refunds and withdrawals on the fastest payments rails, while ensuring a compliance focused process. Supported by open banking-enabled account verification, it makes sure you’re paying the right account, right away. (Which is how payouts should work.)Here’s what that could do for your business:
- Boost customer loyalty by initiating payouts that settle the very next second, 24/7. That’s far faster than the five days cards or Bacs can take.
- Eliminate the cost of lost or failed payouts by using bank-verified account information to automate payment setup.
- Ditch manual tracking processes by initiating payouts via a single API, removing errors from the whole equation.
- Streamline due diligence and instantly confirm account ownership by verifying that a user’s name matches with what’s on file at their bank.
The payouts problem1. Traditional methods take agesIn this day and age, no one wants to wait to get their money. People expect prompt payments that settle in seconds. The five days it can take for card and Bacs payments to appear pains customers and doesn't exactly build customer loyalty.
This is made worse when businesses, as part of their due diligence, need to verify a new user’s payment details and identity before issuing a payout, stopping customers mid-flow and making the process even slower. Cue customer churn.It can take a user up to 10 minutes to upload their bank statements and three more days for compliance teams to review and validate them. Other methods like micro-deposits can take a while to settle and can be cumbersome for users to confirm. That’s not to mention what happens when IBAN or account details are entered incorrectly, and the user has to start the whole process over again. But the problems don’t end there. 2. For businesses, the whole thing is costly and extra effortPaying out to customers means managing multiple reports, scrolling through endless rows of data, and manually tracking each payment. And that leads to a whole heap of operational inefficiencies, input errors and complaints from customers whose payouts were never issued — or worse, lost.Simply: current payout processes are extra slow, extra effort and prone to errors. And that kills customer loyalty.
2 in 3 shoppers consider time taken to receive a refund an important factor to shop with a merchant again
2 hours of labour goes into one return – this typically costs £30.00 (2h x £15)
So, we’ve built a solution: automated instant payoutscombines open banking account verification with the fastest payment rails available. The process is simple:
- The user requests to withdraw funds or to receive a refund
- The user gives us consent to access their banking data
- The user is directed to their banking app where they confirm they own the account using their fingerprint, FaceID or login details
- We compare the user’s name in your system to their name on file at the bank, and immediately verify whether it matches
- With the user’s details verified, a payout can then be initiated
1/3 investors would consider depositing more money if they could withdraw instantly.