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Carat, Fiserv Inc.’s digital payout service, has broadened the number of accounts payments can be sent to with the addition of PayPal Holdings Inc. and Venmo. Carat payouts already can be sent to a credit or debit card, via automated clearing house to a bank account, to a prepaid card, or as a digital check.
Announced Wednesday, the addition of PayPal and Venmo—which collectively have more than 400 million active accounts—significantly expands the pool of accounts.
“With the addition of payouts to PayPal and Venmo accounts via our Carat ecosystem, businesses can benefit from enhanced visibility of their brand via a logo, tagline, or customized message in Venmo’s social-payments platform,” Nandan Sheth, Fiserv head of Carat and digital commerce, said in a statement. “This provides our clients with a unique opportunity to drive next-generation customer experiences, with the simplicity of doing so at scale through a single [application programming interface].”
Fiserv has been touting Carat since its launch in November. The service generated $2.5 billion in payment volume in the first half of 2021, and counts 10 of the largest convenience stores and nine of the 10 largest grocers as clients, Fiserv said in July when announcing its latest earnings results. Fiserv says Carat currently has nearly $1 billion in digital payouts a month. State Farm Insurance Cos., for example, uses Carat for its Digital Pay claims payout service.
