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Wave leads small business accounting industry with “Instant Payouts”
Wave’s “Instant Payouts” offers small businesses real-time* access to funds
Empowering small business owners with real-time* payouts
Wave’s mission is to make it easier for small business owners to confidently manage their finances by providing a streamlined suite of accounting products and payment processing solutions. So, when Wave’s customers wanted to receive their earnings more quickly to help ensure positive cash flow and put money back into their businesses, Wave needed to find a solution. The financial services company worked with their solution provider to launch Visa Direct’s real-time* push-to-card capability as part of Wave’s "Instant Payouts" in December of 2018, becoming one of the first in small business accounting to offer push-to-card payments.
Today, more than ever, small businesses are looking for ways to manage their cash flow. When they need money, they need it quickly and whatever financial rails enables us to move that money faster is where we will invest. Visa Direct is able to help move money at the speed of data and frankly the way it should be. This is why we are continuing to work with them to bring ‘Instant Payouts’ to other markets and products.
— Les Whiting, CFSO, Wave
Challenge: Small business owners wanted a faster, more convenient solution
Wave’s payment processing helps small business owners access their funds, but businesses that operate 24/7/365 needed to receive funds faster in order to ease their cash flow worries. These entrepreneurs wanted access to funds over weekends and bank holidays so they could run their businesses more efficiently. Wave’s solution also needed to work for a diverse user base, with some small businesses receiving several payouts per day and others using the service only a few times per year.
Solution: Wave delivers on small business owners’ cash flow needs
Wave listened to their customers and understood their pain points. They enabled Visa Direct’s real-time* payments and launched "Instant Payouts” to help small business owners protect themselves from cash flow limitations and give them fast access to funds for payroll and other expenses. Wave charges a 1% fee for "Instant Payouts,” a cost that many entrepreneurs are willing to pay for the assurance that funds will be available when they need them. With “Instant Payouts,” Wave’s customers feel confident that they won’t have to tap into their personal accounts for business purposes. Wave also offers a scheduled “Instant Payouts" feature, giving small business owners the ability to schedule payouts if they don’t have time to log into the app.
Result: “Instant Payouts” helps Wave retain customers and grow its business
Following the implementation of “Instant Payouts,” Wave heard from its customers they were more satisfied and willing to stay with Wave longer.¹ The offering helps small business owners optimize cash flow and ensure more efficient processes. They use the funds to cover expenses, like new equipment or inventory, that enable them to run or expand their businesses. Small business owners love the flexibility “Instant Payouts” provides — they can use it for every payout or only when they need fast funds. Plus, with real-time* payments being processed through the trusted Visa network, they feel assured that the payouts are secure. Wave’s “Instant Payouts” product has been so successful that they plan to expand the offering to all users.
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*Actual fund availability depends on receiving financial institution and region.
- Wave internal data, September 2019 – February 2020.
- Wave internal data, September 2020 – October 2020.
- PYMNTS/Visa ‘Road to Recover: Mainstreet SMBs and Closing the Cash Flow Gap’ Report, July 2020 Survey of 359 U.S. SMBs from May to June 2020.