By Natalie DeCoste

Fintech companies continue to make waves as Paypal and financial services technology company Fiserv partner to allow workers to send their paychecks directly to a PayPal or Venmo wallet.

The partnership, announced on Aug. 18, pairs Fiserv, a leading global provider of payments and financial services technology solutions, and Paypal to allow businesses that deliver mass payouts to provide additional options for consumers to receive funds quickly.

Fiserv’s current clients include Lyft, State Farm, and FanDuel, all of whom will immediately have access to the new partnership’s technology.

The announcement is a major development for gig economy workers and digital enthusiasts as digital wallets have become increasingly popular lately. This new partnership is focused on giving consumers faster access to payouts to provide the added convenience of payouts directly into a consumer’s preferred account or wallet.

“Fiserv is helping organizations across the globe move money and information with the speed, flexibility, and convenience that today’s consumer is demanding,” said Nandan Sheth, Head of Carat and Digital Commerce at Fiserv.

Carat is Fiserv’s omnichannel commerce solution intended for large national and multinational companies. The service provides innovative commerce capabilities to aid merchants in meeting the ever-growing demands of the e-commerce world. Digital payouts are already a part of Carat’s omnichannel ecosystem.

Carat is already well-established on the digital payout front. The company currently executes nearly $1 billion in digital payouts a month through exclusive payout options and direct bank connections.

The new partnership will also help give businesses new, untapped marketing opportunities on the Venmo platform.

“With the addition of payouts to PayPal and Venmo accounts via our Carat ecosystem, businesses can benefit from enhanced visibility of their brand via a logo, tagline, or customized message in Venmo’s social payments platform. This provides our clients with a unique opportunity to drive next-generation customer experiences, with the simplicity of doing so at scale through a single API,” said Sheth.

Fiserv and Paypal are promoting the use of digital payments as beneficial for the business and its operating costs. According to Fiserv’s announcement, digital payouts can help businesses save time and money with a comprehensive solution that reduces operating costs associated with delivering paper checks.

In addition to payouts to digital wallets such as PayPal and Venmo, businesses can also disburse digital payouts through a consumer’s credit or debit card, ACH, prepaid card, and even a digital check.

“With more than 400 million active accounts on the PayPal and Venmo platforms, we are able to provide companies with a fast, easy, and cost effective way to send money in situations such as insurance payouts or other disbursements. This integration 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,” said Dan Leberman, Senior Vice President of Partnerships, PayPal.

According to the American Payroll Association, 94% of employees currently have their checks sent directly to a bank account through direct deposit. Should more consumers choose to go with Paypal over a traditional bank, the volume of payments going through the fintech company would increase exponentially.