TodayPay Introduces "Refunds as a Service™" Payment Solution

Published 7 months ago

TodayPay Inc., a technology company led by former J.P. Morgan Managing Director and Head of Fintech, Jeremy Balkin, has launched a new payments fintech product dubbed “Refunds as a Service™”. The company made the announcement during the Money 20/20 event in Las Vegas.

Defining Refunds as a Service™

The new solution is aimed at equipping merchants with the ability to offer their customers instant refunds in multiple payment methods. This service category is being pioneered by TodayPay and offers a suite of alternative refund solutions for merchants. This enables them to offer Better Refund™ choices to consumers under a “Refund Now Pay Later™” model.

Balkin, the CEO of TodayPay, emphasizes the importance of payment speed, stating that it can significantly impact a person’s life. He notes the lack of innovation in the area of refunds, despite the trillion-dollar value exchanged in the form of refunds annually.

Transforming the Refund Process

TodayPay aims to turn the refund process from being a “place where money goes to die” to an intelligent customer acquisition channel for merchants. The service is particularly beneficial for e-commerce merchants, marketplaces, logistics providers, and insurance companies. It helps to increase checkout conversion rates, grow loyalty-driven sales, and prevent expensive disputes and fraud.

One key feature of TodayPay is its ability to separate the refund process from the return process, thereby improving the overall customer experience. Consumers can get paid instantly with multiple redemption choices, rather than waiting for a reversal back to the original payment method.

The Need for a New Refund Process

The U.S. Census Bureau reported that total U.S. retail sales reached $7.1 trillion in 2022. About one-fifth of all purchases in the U.S. are returned, with online purchases having a 3 to 5 times higher return rate than in-store purchases.

The Baymard Institute has found that average cart abandonment rates across the industry are 69%. Disputes cost merchants and consumers $100 billion each year. The National Retailers Federation estimates that return fraud costs 10.7% per transaction.

Early Success and Recognition

In its stealth mode, TodayPay has gained considerable traction with e-commerce merchants, insurers, investors, and leading payment technology companies like Visa. The company’s early success has also been recognized, with TodayPay named a Finalist for Startup of the Year at the upcoming US FinTech Awards in New York City.

TodayPay is working with world-leading corporate and strategic partner firms, including Visa, a global leader in digital payments. These partnerships are aimed at expanding access to financial tools and services, aligning with Visa’s commitment to uplift everyone everywhere.

Related news