Digital Transactions Authoritative, insightful and timely information for payments professionals
Paysafe Ltd. and Fiserv Inc. are teaming up to offer merchants using Fiserv’s Clover point-of-sale terminals a digital wallet to receive settlements and access banking services. The wallet, which is intended to speed settlements, allows merchants to accept payments, including credit cards, bank transfers, and alternative options, and use the funds stored in the wallet to pay suppliers and employees. Users can also transfer funds to other accounts.
Two merchant benefits stemming from the new wallet are faster access to funds and increased operating efficiencies, says Stewart Watterson, a strategic advisor for Datos Insights.
“Instant account settlement allows merchants to receive funds immediately when customers make payments in-store or online, compared to traditional card payments that typically take at least a day or sometimes only settle twice a week,” Watterson says by email. “The real-time settlement model brings card-based payments into the instant-payment era, addressing competitive threats to the card industry’s longstanding business construct.”
Other benefits of digital wallets for merchants include lower transaction costs, which can be as much as 40% lower than the cost of handling cash, and improved security through the use of encryption to “safeguard consumer information and transactions, making them more secure than conventional payment methods,” Watterson says.
As a result of these benefits, the adoption of digital wallets for merchant settlements is becoming more common, Watterson adds.
Digital wallets account for about 40% of Paysafe’s business
In addition to the digital wallet, Paysafe will leverage Fiserv’s data–as–a-service solution. This technology enables merchants to access data in near real time, store data, perform data analysis, and share data, including third-party information.
Paysafe will also integrate Fiserv’s Clover Capital solution, which is meant to provide small and medium-size businesses with better access to growth capital.
These initiatives expand Paysafe’s and Fiserv’s partnership to support SMBs by providing them the tools needed “to thrive in today’s digital economy” according to the two companies.
“These strategic initiatives reflect the strength and momentum of our partnership with Fiserv,” Paysafe chief executive Bruce Lowthers says in a statement. “Together, we are creating innovative, growth-oriented solutions that unlock new opportunities for SMBs while accelerating our product expansion strategies.”
