Imburse partners with Sapiens to provide access to the global payments ecosystem

Imburse, a cloud-based payment middleware, are pleased to announce their strategic partnership with Sapiens International Corporation, a leading global provider of software solutions for the insurance industry to enable Sapiens’ customers to easily connect with any payment provider or technology of their choice, for both collections and pay-outs.

The partnership provides numerous benefits, including complete payment coverage and accessibility for collections and pay-outs in any market, enablement of multi-tenant architecture, and cost reductions in integrating with payment providers and technologies. Sapiens’ customers are now able to benefit from Imburse’s middleware solution through their Sapiens tooling. 

“Getting payments right is vital for the customer experience as well as business efficiencies. It is the one capability that creates a significant amount of costs and resource drain for insurers. Sapiens deliver a low-code platform for enabling insurers to digitise and improve their customer experience. At Imburse, we simplify how insurers deploy payment capabilities for collections and payouts. The combined capabilities of Sapiens and Imburse will enable insurers to connect to the global payments ecosystem through one single connection giving customers more choice in how they pay and receive claim payouts.” said Oliver Werneyer, Co-founder and CEO of Imburse.

Sapiens International Corporation empowers the financial sector, with a focus on insurance, to transform and become digital, innovative, and agile. Backed by 40 years of industry expertise, Sapiens offers a complete insurance platform, with pre-integrated, low-code solutions and a cloud-first approach that accelerates customers’ digital transformation.

“With over 40 years’ experience in the software market, Sapiens understands the benefit of staying relevant and evolving to suit the needs of partners and customers,” said Roni Al-Dor, Sapiens president and CEO. “Our extensive knowledge of the insurance industry, as well as our deep relationships with insurers around the globe and ground-breaking insurtech providers, has positioned Sapiens to help drive innovation and benefit our clients.”

About Imburse

Imburse is a cloud-based middleware connecting large enterprises to the payments ecosystem, regardless of their existing IT infrastructure. Through a single connection to Imburse, enterprises can collect or pay-out using a variety of payment technologies and providers around the globe.

In a world where consumers’ payment preferences and technologies are ever-evolving, Imburse works with insurers to future-proof their payment requirements. Regardless of the business area, market, or requirements, Imburse will connect you to your choice of technology and provider. For more information, please visit https://imbursepayments.com/

Media Contact

Imburse

Beth Molloy – Account Executive, ClearStory International

beth@clearstoryinternational.com

About Sapiens

Sapiens International Corporation (NASDAQ and TASE: SPNS) empowers the financial sector, with a focus on insurance, to transform and become digital, innovative, and agile. Backed by more than 40 years of industry expertise, Sapiens offers a complete insurance platform, with pre-integrated, low-code solutions and a cloud-first approach that accelerates customers’ digital transformation. Serving over 600 customers in 30 countries, Sapiens offers insurers across property and casualty, workers compensation and life markets the most comprehensive set of solutions, from core to complementary, including Reinsurance, Financial & Compliance, Data & Analytics, Digital, and Decision Management.  For more information visit www.sapiens.com or follow us on LinkedIn.

Media Contact

Shay Assaraf

Chief of Marketing, Sapiens

Shay.assaraf@sapiens.com

The most popular payment methods for Insurance in Europe by country 

While various payment methods are popular worldwide, payment method preferences and solutions vary widely depending on various factors. In Europe alone, multiple solutions apply only to a specific country. Knowing your customers’ exact payment preferences is vital to reducing drop-offs at the checkout stage, which applies to any industry. For instance, insurance premiums, unlike eCommerce purchases, are mostly paid out through several installments, rather than a one-off transaction. Offering methods that enable recurring payments, such as direct debits and credit cards, may contribute to a better customer experience and a more efficient collection operation for insurers.  

There are many demographic factors to take into consideration when choosing which payment methods to offer, including age, gender, and class. The insurers’ target customers will have an effect on payment methods too. For instance, millennials and gen z are likely to be more tech-savvy and to choose less mainstream payment methods. In this report, we focus on the variety of payment solutions across specific European countries and how they differ from each other.     

Advantages of offering country-specific payment options at checkout  

ECommerce has boomed drastically over the last few years, and it has been shaping customer expectations for all the other sectors. As increasingly more consumers turn to digital to make purchases, ecommerce has seen the greatest advancements and innovations of all times. From AI-powered personalisation to single-click checkouts, consumers are offered the simplest and most seamless buying experiences, particularly at checkout. The challenge, however, is that customers now expect this quick and straightforward payment service for any product they buy online, including their insurance policies.     

Despite the advancements of eCommerce, the average checkout drop-off rate for desktop users is still at 69.75%, and Baymard Institute estimates that $260 billion could be recoverable by providing better checkout experiences. In a recent survey, 9% of the respondents mentioned the lack of payment method variety as their main reason for dropping off at checkout. Other causes include high extra fees, the requirement to create an account, and the unreliability of the website regarding safety.  

This applies to insurance too, as customers want to be able to pay for their products quickly, efficiently, and using their preferred payment method. Being able to convert that 9% of people who dropped off into real customers poses a serious profit opportunity that can’t be disregarded. It starts with knowing what your customers want and offering the payment methods that are specific to them and to where they are based.  

Imburse is a cloud-based payment middleware offering connectivity to the entire payments ecosystem. Once connected to Imburse, enterprises can easily integrate with any payment provider or technology, in any market, for both collections and payouts, gaining the flexibility to adapt to different markets and unique customers’ needs. Our data team developed a thorough report that covers some of the most popular payment solutions across various European countries. This report highlights the variety of solutions available, as well as the importance of meeting customers’ specific needs at checkout.  

Payment methods in Europe  

Debit or credit cards are the most popular payment method in Europe, with Western and Central Europeans using this payment methods for 45% of their online purchases. Bank transfer is the second most popular payment method, used for 25% of all online purchases in Europe. E-wallets coming in as the third preferred option of Europeans, followed by cash and other less known payment methods (Ppro report). 

Payment methods in the UK 

50% of the UK population prefers using credit and debit cards to make purchases online, with some of the most popular card networks being Visa, Mastercard, and American Express. Digital wallets such as ApplePay, GooglePay, Amazon Pay, and PayPal come in second as the choice of 28% of UK consumers.  

8% of UK residents prefer using cash through payment methods such as Paysafecard, and PaysafeCash. Another 8% prefer other payment methods, including Boku and Zip, as well as Buy Now Pay Later solutions like ClearPay, that enable them to pay in installments and spread the costs throughout a designated period. Bank transfers are actually the preference of only 5% of UK residents, making them one of the least popular payment methods in the UK.  

When it comes to financial recurring payments, Direct Debit is the preferred method of 74% of UK residents. 30% of all recurring payments are financial and include mortgages, insurance, loans, pensions, and investments (GoCardless report).   

Imburse offers over 60% of payment coverage in the UK and over 80% of insurance-specific coverage. Once connected to us, you can connect with most payment providers and technologies, both international and UK-specific, and offer your customers the payment variety they are looking for.  

Payment methods in Portugal 

Credit and debit card payments such as Visa and Mastercard are the most popular payment method in Portugal, preferred by 44% of Portuguese consumers. Digital wallets take second place as the preferred payment choice of 26% of Portuguese. These wallets include the well-known Apple Pay and Google Pay, but also country-specific solutions such as MB Way.  

Imburse has over 60% payment coverage in the Portuguese market and over 80% insurance-specific coverage. By connecting to us, you can easily access most of the payment providers and technologies available in Portugal and offer your Portuguese customers the payment methods of their choice.  

Payment methods in Spain 

Similar to Portugal, Spain’s preferred payment method is debit or credit card, chosen by 47% of Spanish consumers. This is followed by digital wallets such as bizum and CaixaBank, both Spain-based solutions. Bank Transfers take third place and are preferred by 16% of Spanish consumers. Some of Spain’s most popular technologies for bank transfers include BBVA, Safety Pay, Sabadell, and iberCaja.  

Other popular payment methods in Spain include cash, chosen by 8% of Spain residents, and other solutions such as Oney, Mobiamo, and ClearPay. Imburse provides over 60% of payment coverage for the Spanish market and over 80% of insurance-specific coverage.  

Payment methods in Switzerland 

Contrary to Portugal and Spain, a bank transfer is actually the most popular payment method in Switzerland. 53% of Swiss consumers prefer bank transfers to pay for products and services. The technologies used for these transfers vary widely, some of the most popular ones being SEPA, Powerpay, Availabil, and Trustly. This is followed by 24% of the Swiss population opting for credit or debit cards such as Visa, Mastercard, and Myone. Digital wallets come in third place, chosen by 20% of Swiss consumers. Aside from ApplePay, GooglePay, and PayPal, there are other equally popular digital wallets such as Twint and Skrill.  

Imburse covers over 30% of all the Swiss payment providers and technologies and over 50% of the insurance-specific payment market. Our solution also enables you to add or change providers easily and quickly to adapt to customers’ ever-changing needs.  

Payment methods in Germany 

Bank transfer is Germany’s most popular payment method, with 49% of German residents preferring it over other methods. The technologies used include SEPA, Giropay, Paydirekt, Sofort, Paymorrow, Laterpay, and Klarna, so there is a mix of international and Germany-specific bank transfer technologies.  

Digital wallets such as Bluecode, Skrill, and Zimpler are chosen by 28% of German consumers, followed by credit and debit cards, preferred by 11% of German consumers. Other solutions and cash come in fourth and fifth place, respectively. Imburse offers coverage for over 30% of payment providers and technologies in Germany and over 50% of insurance-specific payment coverage.   

Offer country-specific payment methods with Imburse.  

Ensuring that your customers have their payment needs met should be of utmost priority to any business. Unlike in other sectors, insurers need to focus on premium collections and claims payouts or claims reimbursements. They need to deliver a great payment experience on both occasions to ensure customer satisfaction. However, connecting to multiple payment providers and technologies is nothing short of a hassle, mainly when insurers are reliant on traditional IT systems incompatible with modern technologies.  

Imburse is a cloud-based middleware connecting large enterprises to the payments ecosystem, regardless of their existing IT infrastructure. Through a single connection to Imburse, enterprises can collect or pay out using various payment technologies and providers around the globe. 

In a world where consumers’ payment preferences and technologies are ever-evolving, Imburse works with insurers to future-proof their payment requirements. Regardless of the business area, market, or needs, Imburse will connect you to your choice of technology and provider. 

Reach out to our team below should you want to discuss how Imburse can help you. Our team is happy to show you what our platform can do for your business and offer you a free demo. 

Why payment tracking is essential

It isn’t uncommon to receive tracking details for orders we make online. Much like any product delivery or important mail, payments can also be tracked. In this article, we discuss what is payment tracking and the importance of keeping track of your payment records.

What is payment tracking?

In the same way that you receive real-time updates from delivery firms, such as for a product you just bought online or for important mail, payment tracking provides you with real-time updates on the progress of your payment. You can see information such as the route your payment took, any routing bank fees or deductions, when the payment reached your recipient’s bank, and when it was credited to your recipient’s account. You may also be able to see the name, address, and SWIFT code of the bank that handled your payment.

A Payment Tracking System tracks and manages payments for various vendors through a web-based application. It consolidates payment requests and delivers all payment information in real-time. This allows companies to gain visibility over their Accounts Payable (AP) and Accounts Receivable.

How to track an online payment

Nowadays, most banks offer the possibility to track bank transfers via their apps, enabling customers to check the status of their payment at any time and to see added fees. However, tracking each payment manually is a cumbersome task that is far from reasonable, especially for large companies that collect and pay out money to thousands of customers on a daily basis. Manual bookkeeping doesn’t work anymore and is also prone to human error. That is why there are several tools and platforms that companies can use to automate their bookkeeping while still ensuring they can get a full view of their cash flow.   

Insurers, for instance, use Direct Debit frequently to collect premiums. In order to keep track of every payment, they need to ensure they have a robust and digital mandate management tool that enables them to have all records on file, without the hassle of having to store physical contracts. They can also automate payments and check the status of the payment in real-time. Imburse offers a mandate management tool that manages all the components of your Direct Debit collections. This includes also unified reporting across all sources. You can learn more about mandate management services and how Imburse can help in our previous article. Also make sure to check our use case on Direct Debits.

Benefits of payment tracking for businesses

There are several benefits to keeping track of your payments. We compiled some of them below:

Cash flow management

Payment tracking enables you to keep a close eye on your financials over a fiscal year, which is essential to better manage your cash flow. The more visibility you have over your expenses, the more accurately you can predict how much money you will have and decide on what to do with that money. A key factor for businesses to thrive is to be able to have a positive cash flow, so monitoring it closely can help you to avoid surprises and enable you to make better business decisions.

Improved forecasting

Because you get greater visibility over your financials, this means you have a clearer idea of how much money you actually have and can calculate your expenses and revenue more accurately. Knowing your numbers is crucial, even to estimate the value of the company and to be able to plan ahead when it comes to investing money in new tools or products. It will also enable you to easily allocate the money you have available into different teams and activities.

Doing your taxes

As you will have complete records of your payments (both collections and payouts), when the time comes to file your taxes, it will be much easier to collect information. You will also be able to more easily separate the non-deductible expenses from tax-deductible expenses, facilitating the job of your accounting team. You should keep a record of every single payment made to or by your customers, as well as other vendors and partners you work with. Unified reporting enables you to do just that. No matter how many payment providers you are connected with, you are able to condense that information into a single platform. Learn more about unified transaction reporting here.

Unpredicted expenses and reimbursements  

Recording expenses and knowing how much financial power you have enables you to allocate money to other tasks comfortably. It is crucial that you have enough money to cover for unpredicted expenses that wouldn’t usually be a part of your payment records, as well as enough money to give bonuses or reimburse employees for work expenses.

About Imburse

Imburse is a cloud-based middleware connecting large enterprises to the payments ecosystem, regardless of their existing IT infrastructure. Through a single connection to Imburse, enterprises can collect or pay out using various payment technologies and providers around the globe.

In a world where consumers’ payment preferences and technologies are ever-evolving, Imburse works with insurers to future-proof their payment requirements. Regardless of the business area, market, or needs, Imburse will connect you to your choice of technology and provider.

Reach out to our team below should you want to discuss how Imburse can help you. Our team is happy to show you what our platform can do for your business and offer you a free demo.

What are split payments?

The payments industry is ever-evolving to match customers’ changing needs. A quick payment experience isn’t enough anymore: customers want a more tailored journey, using their preferred payment methods in whichever way is more convenient. Split payments are part of this constant industry transformation. This article guides you through all you need to know about split payments, including their use cases, benefits, and business implications.

What is a split payment?

A split payment is a transaction involving paying for one purchase using more than one payment method, which could be additional credit or debit cards or even vouchers. Split payments can be made by a single user who chooses to pay using various methods or by more users who are splitting a bill for a product they bought together. Most banks offer this functionality to their customers by enabling them to request money from whoever they split the bill with (also called sub-payees).

Split payments can be used both by individuals and companies. For individuals, split payments may be helpful to pay, for instance, for a shared restaurant or household bill. For businesses, split payments are helpful when dealing with multiple vendors, sellers, or merchants. Brick-and-mortar shops are more likely to offer this functionality, as online shops have been slower in adopting it. However, most global e-commerce shops already enable users to use, for instance, use their gift card balance to pay for part of their purchase, along with their debit card to pay for the remaining costs.

Types of split payments

It is possible to split payments across various payment methods, subject to the company’s offerings. Some of these payment methods include:

  • Credit or debit card
  • Cash
  • Gift card
  • Reward cards
  • Store credit card
  • Checks
Insurers must be able to offer a wide variety of payment methods.

Split payments vs. deferred payments

Deferred payments can be split into a set number of installments, paid for throughout a specific period. Rather than a one-off, full payment, customers divide the costs of a purchase into separate installments that they can pay at a later date, usually with no interest added. The most popular form of deferred payments is Buy Now Pay Later, or BNPL made common through solutions like Klarna, which was adopted by major retailers worldwide. BNPL is a type of split payment that, rather than being processed in full at the time of purchase and simply using different payment methods, is divided into smaller payments processed on other occasions.

Usages of split payments

There are various use cases for split payments, some more popular than others. Let’s look at three relevant use cases below:

E-commerce sector

Global marketplaces such as Amazon offer products from thousands of sellers across the globe. When customers purchase items from different sellers in one order, the payments must be divided by each seller’s product so that all sellers get the correct amounts on time. Split payments make this possible, enabling easier cash flow management and simplifying the settlement of payments into various accounts.

Education and Ed-tech sector

Schools and other educational organisations may charge different fees for courses, access to resources, sports, etc., and they may want to have these fees allocated to various departments. Split payments enable them to distribute the correct amounts to each department with minimal manual efforts. In the case of ed-tech, online educational platforms like Coursera need to transfer the right parts from the students to each tutor, which is also made possible through split payments.

Aggregators

Aggregators like Uber need to collect payments from various customers and pay each Uber driver accurately and timely. Split payments enable them to gather all the gains from different customers into a single payment to the driver.  

Benefits of split payments

Generally, providing customers with a wide range of payment options means that companies can cater to each customer’s payment needs and preferences. For instance, while most customers may choose to pay with a debit card, others may use PayPal as their first choice to pay for services online. Split payments enable customers to pay however they want to pay, resulting in a much higher conversion rate, more sales, and more revenue for the businesses. In sum, split payments enable companies to:

  • Increase conversion rates
  • Reduce checkout friction and checkout abandonment
  • Deliver a better customer payment experience
  • Boost customer satisfaction and customer loyalty
  • Potential increase of order value due to higher payment flexibility

Split payments challenges for businesses

While split payments greatly benefit customers and businesses, enabling this functionality isn’t a straightforward process. Here are some implications you may want to keep in mind if you are considering providing your customers with split payments options:

  • Technical integrations– Offering split payments means that you need to provide a range of payment options to start with. For instance, you need to accept a range of card networks, digital wallets, bank transfers, or vouchers. A single payment provider won’t cater to all these options, so you must integrate with multiple providers. Integrations with providers are costly, lengthy, and resource-draining. Thankfully, solutions like Imburse can help.
  • Card verification- If customers use two different cards to purchase a service or product, both cards need to be verified, and the billing address needs to be matched with the card issuers. However, most often than not, providers will do the verification process for you.
  • Refunds- Refunds are slightly more complex when they involve more than one payment method, as the payment needs to be refunded to the same payment methods used in the purchase. Split payment refunds may require further communication with the support/customer service team.  

About Imburse

Imburse is a cloud-based middleware connecting large enterprises to the payments ecosystem, regardless of their existing IT infrastructure. Through a single connection to Imburse, enterprises can collect or pay out using various payment technologies and providers around the globe.

In a world where consumers’ payment preferences and technologies are ever-evolving, Imburse works with insurers to future-proof their payment requirements. Regardless of the business area, market, or needs, Imburse will connect you to your choice of technology and provider.

Reach out to our team below should you want to discuss how Imburse can help you. Our team is happy to show you what our platform can do for your business and offer you a free demo.

What are 2FA and MFA? A Guide to Authentication Methods

Cyberattacks are amongst the top concerns of the financial industry, and they show no signs of slowing down. According to an Accenture report, security crimes have risen 31% between 2020 and 2021, despite all the innovative security tools companies and individuals can have in place. Data protection is crucial for any organisation, especially as the cost of cybercrime is expected to hit $10.5 trillion by 2025 (Cisco/Cybersecurity Ventures report).

Both 2FA and MFA help organizations protect their customer data by adding an extra layer of security when creating accounts, logging in, or making payments. In this article, we explore the advantages of 2FA and MFA and how they differ from each other.

What is 2FA?

2FA or 2 Factor Authentication is a process by which users need to add an extra piece of information before accessing their accounts. Aside from the usual username and password entering, 2FA requires users to add other personal data to verify their legitimacy. This adds extra protection to their data because even if criminals could find out the user’s username and password, they are unlikely to know or have the second factor required to authenticate themselves, so they wouldn’t be able to access the account. The second factor could be any of the following:

Something you know

This can be another password or, most often, a secret answer to a particular question related to your hometown, pets, childhood, parents, etc.

Something you have

This is something that users own, which could be a credit card, smartphone, or other pieces of hardware that they can use to verify their identity.

Something you are

This includes biometric patterns such as a fingerprint, voice print, or iris scan. Users are required to, for instance, take a selfie, so their face is scanned and matched to their account records.  

The pandemic and rise of online payments required strong security tools.

Types of 2FA

There are various types of 2FA that websites have in place. Some are slightly more advanced than others, but any 2FA is more secure than the regular password and username combination. These are some of the most popular 2FA types that users may find on websites and apps:

SMS-based 2FA

Various companies use SMS-based 2FA to verify their customers’ identities. This type of authentication includes sending a unique one-time passcode or OTP via SMS to customers once they have correctly introduced their username and password. Customers often have a limited time to check the OTP and add it to their website. Once the time limit has passed, customers must request an OTP again. While this method is widely used, it is considered one of the least safe ways of authentication, so companies that manage personal information may opt for more advanced techniques.

Push notifications

Another common type of 2FA is push notifications. When users log in to a website, they get either an email or SMS message stating that somebody tried to access their account. Then, they can either confirm it was them or deny access if it wasn’t them. These notifications often contain the exact time when the tentative log-in happened and the IP Address of the person who tried to access the account. No password or tokens are required for this method, just a button click.

2FA Software Tokens

This 2FA method requires users to download an authentication app such as Google Authenticator, Microsoft Authenticator, or Lastpass. These are all free to install and contain time-limited codes, usually composed of a set of numbers. These codes, or soft-tokens, change every other minute. When logging in to a website and adding the username and password, the website will require users to add their unique code. Users must open their authenticator app, check the code and add it to the website. The apps enable users to connect to multiple websites, so having one app is enough. 

Differences between 2FA and MFA

MFA, or multi-factor authentication, is a method that requires more than two authentication factors. These factors are taken from the list above: something users have, something they own, or something they are. The only difference between the two methods is that while 2FA requires only one extra factor from the list, MFA requires at least two.

Despite MFA seeming more complete and more secure, it is difficult to determine precisely which method adds more security. This is because it very much depends on the types of authentication chosen. For instance, as we have seen, SMS-based authentication is not highly reliable, whereas a fingerprint or iris scan is much more challenging to fake. Generally, however, the more layers of security, the better.

Customer identity processes help to prevent money laundering crimes.

Advantages and disadvantages of 2FA and MFA

Advantages of using 2FA and MFA include, naturally, higher security and higher flexibility as both employees and customers can access systems from anywhere without risking their safety, reduced costs in help desks and security management, and increased credibility and trust from customers. 2FA and MFA are also convenient for customers, as they don’t have to go out of their way to authenticate themselves and most users have a mobile phone on hand. This creates a more frictionless experience for them, which also helps increase customer satisfaction.

On the other hand, customers want as few steps as possible when logging into their accounts, and it takes longer to go through various authentication steps. So, there has to be the right mix of security and speed. MFA also isn’t free for companies, and they can’t build a security tool like this themselves, so they have to outsource it to a third party. Luckily, various platforms offer 2FA and MFA, so there isn’t a lack of choice or availability in the market.

About Imburse

Imburse is a cloud-based middleware connecting large enterprises to the payments ecosystem, regardless of their existing IT infrastructure. Through a single connection to Imburse, enterprises can collect or pay out using various payment technologies and providers around the globe.

In a world where consumers’ payment preferences and technologies are ever-evolving, Imburse works with insurers to future-proof their payment requirements. Regardless of the business area, market, or needs, Imburse will connect you to your choice of technology and provider.

Reach out to our team below should you want to discuss how Imburse can help you. Our team is happy to show you what our platform can do for your business and offer you a free demo.

What does ASAP mean in payments?

ASAP isn’t just the acronym we use in our everyday lives. In payments, it holds a different meaning. If you are based in the US, you may already be familiar with this term. Though it is unlikely you will come across it in your day-to-day, ASAP is an essential system for federal payments in the US. This article explains what ASAP stands for in the payments industry and how it works.  

What is ASAP?

ASAP, short for Automated Standard Application for Payments, is an electronic payment and information application used by federal agencies in the United States. Initially, it was developed by the Financial Management Service (FMS) and the Federal Reserve Bank of Richmond, which now operates the system. The ASAP allows organizations receiving federal funds to draw these funds from pre-authorised accounts established by the agencies issuing the payments. It is free to use for both parties.  

Recipient organisations must be enrolled by the federal agencies, responsible for authorizing every payment, managing their accounts, and providing technical support. The list of recipient organisations includes state and local governments, educational institutions, banks, other financial institutions, and vendors and contractors. ASAP only applies to organisations receiving federal funds- it doesn’t apply to any other party or individual. In this tax year of 2019, close to half a million payments were processed, totaling $594 billion.

How organisations can enroll in ASAP

Receiving organisations must have a Data Universal Numbering System (DUNS) to receive a payment via ASAP. They can get one for free by filling in this form. Organisations must also have an active registration in the Central Contractor Registry (CCR), and the registration is also free of charge. Once organisations meet these two conditions, the process goes as follows:

  1. Federal Enrollment Initiator starts the enrolment process by entering the DUNS, TIN, contact information for the Point of Contact, and type of organisation.
  2. Organisations can enroll online. The Point of Contact nominated by the organisation needs to confirm that all the information entered is correct and to enter information for the other officials who have roles in ASAP.
  3. The Head of Organisation approves this information.
  4. The Authorising Official confirms that all information is correct and identifies who in the organisation will use ASAP.
  5. The Financial Official enters the organisation’s bank account details.
  6. ASAP notifies the federal agency’s Federal Enrollment Initiator, who completes the enrollment.
  7. Organisations are notified that the enrollment process is completed, and the funded accounts are ready.
  8. Organisations can log in to ASAP to request payments, see payment status or get reports. They will also get a ASAP ID which they can use for reference.

Recipient users and roles for ASAP

Various roles must be fulfilled to receive federal funds through ASAP, some of which we mentioned in the section above:

  • Initial Point of Contact – added by the federal agency, self-designates all roles, and adds additional users
  • Point of Contact (POC) – adds users and can modify their roles
  • Head of Organisation (HOO) – approves changes to users and their roles
  • Financial Official (FO) – enters and manages bank account details
  • Authorising Official (AO) – Adds Payment Requestors and Inquirer Only users
  • Payment Requestor – initiates payment requests
  • Inquirer Only – Runs reports

When will organisations see the funds in ASAP?

The US Treasury may take up to 10 business days to validate bank information. Once this information is validated, the federal agency can enter the organisations’ ASAP ID into their financial system and link it to ASAP. Once this link is established, the funds will be transferred to the correspondent account. ASAP suggests waiting at least 15 days for the payment to be completed after enrollment.

Types of ASAP payments

There are two main types of ASAP payments: Fedwire and ACH transfers. ASAP payments can be processed on the same day or scheduled for a specific calendar date, depending on the type of payment organisations choose. Let’s check the differences between both:

Fedwire

Fedwire offers real-time payment settlement, so payments are processed instantly. Despite being quicker than ACH payments, Fedwire transfers often come with added costs, such as bank fees, making them more expensive. You can check their 2022 pricing structure for a detailed overview of all the potential costs and extra expenses you may be charged with.

ACH

ACH offers next-business-day settlement or same-day settlement for payments requested before 2:30 pm Eastern Time. Though you can’t receive your funds instantly, there are fewer costs associated with ACH transactions. The ACH network is often the preferred payment system for ASAP payments, as it is cost-effective and secure and enables payments to be scheduled for later dates. Have a look at our latest post if you want to know more about the ACH network and how it works.

payments middleware are the connector between enterprises and providers.

Advantages of ASAP

  • Flexible payment options (Fedwire or ACH network)
  • Live customer support
  • Unlimited report access
  • Web-based and secure
  • Reduces the liability of having funds held outside of the Treasury
  • There are no fees to use ASAP

ASAP offers a range of training opportunities for organisations that wish to learn more about it. You can visit their Resources page to access their webinar training and further information and check their user guide.

About Imburse

Imburse is a cloud-based middleware connecting large enterprises to the payments ecosystem, regardless of their existing IT infrastructure. Through a single connection to Imburse, enterprises can collect or pay out using various payment technologies and providers around the globe.

In a world where consumers’ payment preferences and technologies are ever-evolving, Imburse works with insurers to future-proof their payment requirements. Regardless of the business area, market, or needs, Imburse will connect you to your choice of technology and provider.

Reach out to our team below should you want to discuss how Imburse can help you. Our team is happy to show you what our platform can do for your business and offer you a free demo.

What is embedded insurance?

Embedded insurance is a relatively new term that is transforming the insurance industry and shows no signs of slowing down. In fact, according to an InsTech London report, the embedded insurance market is expected to grow to $722bn in GWP by 2030. This article will dive into this industry phenomenon and explain the benefits it can bring to customers and insurers.

What is embedded insurance?

Embedded insurance is offering insurance services alongside other products that customers are purchasing. Think about, for instance, buying a car. Customers can purchase their vehicle and car insurance simultaneously as a bundled deal with embedded insurance. Buying insurance services stops being an ad-hoc task, as it is provided as a native feature included in the website/platform that customers buy their products from. 

With more customers turning digital to buy products, e-commerce has boomed drastically, and other industries were forced to meet customers there. Embedded insurance provides the customers with the convenience they are looking for, as it fits seamlessly in their online customer journeys. Embedded insurance is offering insurance services alongside other products that customers are purchasing.

Aside from the e-commerce boom, customers’ lifestyles have changed significantly over the past few years. There are fewer people buying cars, for instance, and more people renting e-scooters. Embedded insurance is an opportunity for insurers to reap the benefits of these lifestyle changes and adapt to their customers’ needs.

Examples of embedded insurance

There are many examples and use cases for embedded insurance, particularly in the mobility products arena. Aside from purchasing or renting a car, which we mentioned above, you can also:

  • buy travel insurance when purchasing flights
  • get Host Guarantee insurance when using home rentals platforms
  • opt for add-in insurance on your new mobile phone
  • add insurance protection to your new home appliances online

Most of these use cases fall into the P&C space.

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Benefits of embedded insurance

Embedded insurance brings a significant number of advantages to both customers and insurers. Let’s explore how it can benefit both:

Benefits for customers

For customers, embedded insurance means they can get their insurance policies when it matters the most to them and the products that matter the most to them. Easy access to insurance at the time of purchase means that customers don’t have to look for insurance afterward and get more personalized and affordable deals. It is a two-for-one packaged offer that is more convenient for them.

There is an industry-wide emphasis on personalisation and its benefits in improving customer satisfaction, reaching new customers, and retaining existing ones. Embedded insurance is a part of this journey towards more personalised products, services, and customer experiences. It offers customers an end-to-end, frictionless experience that is likely to make them more satisfied with their customer journey and more willing to purchase insurance services.

As the saying goes, “Insurance is sold, not bought.” Buying insurance products can often be a cumbersome task that many will avoid, either due to complex customer journeys or simply because they think insurance isn’t necessary. Embedded insurance helps close the protection gap between customers and their products.

Benefits for insurers

For insurers, embedded insurance means reaching more customers while having lower-cost distribution and low acquisition costs. While the social media era makes it easier for insurers to know where their customers are, what they are seeing, and what they are interested in, it also comes with its downfalls.

Due to very high competition and high customer demands, getting customers’ attention and engagement is a challenging task. Embedded insurance helps insurers get their products and services to their customers in a much simpler and more effective way when they need it the most.

Insurers can also access more data that can be used to improve existing products, reduce underwriting risks, and explore new revenue streams. Most importantly, embedded insurance is here to stay, so failing to adopt it may make it increasingly difficult for insurers to remain relevant. However, reaping the benefits of embedded insurance isn’t as easy as it may seem.

Challenges of adopting embedded insurance and how to overcome them

The most significant barrier to adopting embedded insurance lies with the reliance on decades-old technology stacks. Large insurers that have been around for a long time still entirely rely on their traditional IT infrastructure, which hasn’t been changed or updated. Embedded insurance is a newer phenomenon that requires new and advanced technology. However, insurers struggle to connect to new technologies, as these integrations are highly complex, lengthy, and expensive. Aside from that, they require a lot of resources and expertise.

Embedded insurance’s biggest challenge is an excellent opportunity for collaboration with third parties that offer innovative solutions. For instance, in the payments space, insurers benefit from having a solution like Imburse to connect to the payments world and optimize their payments system. This digital transformation would be incredibly lengthy and costly without a third party. It is also essential to trust the subject matter experts and receive as much guidance as possible for insurers to make sure they make the right business decisions, as these can make or break the success of any product.  

About Imburse

Imburse is a cloud-based middleware connecting large enterprises to the payments ecosystem, regardless of their existing IT infrastructure. Through a single connection to Imburse, enterprises can collect or pay out using various payment technologies and providers around the globe.

In a world where consumers’ payment preferences and technologies are ever-evolving, Imburse works with insurers to future-proof their payment requirements. Regardless of the business area, market, or needs, Imburse will connect you to your choice of technology and provider.

Reach out to our team below should you want to discuss how Imburse can help you. Our team is happy to show you what our platform can do for your business and offer you a free demo.