Digital Transactions Authoritative, insightful and timely information for payments professionals
State Farm Insurance has expanded its relationship with Fiserv Inc. to enable claims payouts into customers’ PayPal accounts. The agreement expands the capabilities State Farm’s Digital Pay solution, which digitally reviews, approves, and disburses auto and fire claims payments.
Consumers can select their preferred payout method, such as sending the payout to their debit card or bank account, as well as select digital wallets, such as PayPal. State Farm customers opting for a digital payout receive funds instantly. Digital Pay, which launched in 2021, is powered by Fiserv’s Carat digital platform.
The decision to add PayPal as an option for receiving claims payouts was driven by consumers’ growing adoption of digital wallets for managing their daily financial tasks, Schuyler Schupbach, operations vice president for State Farm says by email.
In addition, Schupach says offering PayPal as a claims-payout option will enhance the customer experience by further removing friction from the disbursement of claims payouts.
“We believe that by providing customers with additional choice and convenience we are creating a better claims experience for our customers. Schupach says. “We’re always looking for ways to improve the customer experience. Together with Carat, we’re not just simplifying payouts, we’re creating better customer experiences by adding choice and convenience to the claims process.”
State Farm declined to say what percentage of its customers have a PayPal wallet.
