The new deal will enable Obopay to disburse funds from their corporate account directly onto a Visa prepaid card which they can provide to a payee.
The new service will provide benefit to a number of enterprises such as insurance, payroll, rebates, incentives, business expenses, government disbursements or any other bulk payment need, said Visa.
Obopay product and corporate marketing vice president David Schwartz said, "Adding Visa prepaid cards to Obopay Disbursements enables our partners to send funds to any consumer in the U.S. at dramatically lower costs compared to issuing checks while they can also greatly increase the satisfaction of customers."
The new service can be availed without having a traditional bank account, and disbursing funds to a Visa prepaid card is cost effective for both unbanked and under-banked payee, as it does not requires any expenses associated with a cheque such as a check-cashing fee and eliminates the need for consumers to wait to receive and cash a check in order to access their funds.
Visa North America prepaid products head Brian Triplett said, "Today, many businesses are using Visa prepaid cards to reduce costs and exposure to check fraud, while creating a better experience for disbursement recipients, including those who do not have access to checking accounts."
According to Visa, the solution also assist funds to be disbursed via the PIN debit and ATM networks to which Obopay is connected, as well as via ACH.
