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How fintechs can use funds transfer credit payments to boost customer satisfaction

posted on Monday, January 19, 2026 in SHAZAM Blog

Customers expect to see funds immediately in their accounts, whether it’s a paycheck, a reimbursement or an insurance claim payout. Instant access is no longer a competitive advantage, it’s a necessity.

Whether payments are core to your business or simply part of your operations, customers always notice when funds arrive quickly and effortlessly. You have a couple of options to make funds immediately available to your customers, but there’s only one that can reach 99.99% of all debit cardholders — funds transfer credit.

How a Funds Transfer Credit (FTC) works

Just as the railroad connected the country, today’s U.S. payments rail system provides the infrastructure to move money electronically.

FTC leverages the debit card rails to transfer money card-to-card or account-to-account. When you work with a payment processing company, like SHAZAM®, you can get access to these payments rails, allowing you to distribute funds immediately to nearly every debit cardholder in the U.S., eliminating delays from traditional ACH or paper checks.

How FTC differs from other payment options

Along with FTC, there are two instant payments systems in the U.S. — the RTP® System, a real-time payments infrastructure operated by The Clearing House (TCH), and the FedNow® Service, operated by the Federal Reserve. These options also allow instant fund disbursement to your customers.

While FTC uses existing debit card rails, RTP and FedNow use different payment rails. While adoption is growing, these systems currently only reach about 70 – 80% of accountholders.*

All three payment options can perform relatively the same function for businesses and other organizations, but FTC has the largest reach. This is especially helpful considering the wide range of customers you serve every day. While RTP and FedNow gain momentum, you could be using a solution that can already connect to nearly every accountholder.

Real-world examples of how FTC can improve the customer experience

No one likes waiting or delays when it comes to money — making FTC a valuable solution for virtually any business or organization. Here’s how three different sectors are already using it.

FTC for fintechs

Fintechs thrive on speed, convenience and seamless digital experiences. FTC enables fintechs to deliver on those expectations in ways that traditional payment rails simply can’t. Some real-world examples include:

  • Instant funds access: An online membership platform, for example, can instantly deposit sign‑up bonuses, referral rewards or promotional credits to encourage joining.
  • Real-time disbursements for gig workers: Fintech platforms that serve freelancers or gig workers, like Uber® or DoorDash®, can push earnings instantly after each day, improving worker loyalty and happiness.
  • Immediate access to investment proceeds: Brokerage apps can let customers instantly withdraw proceeds from stock sales, eliminating the frustration of settlement delays.

FTC for property & casualty insurance providers

Insurance payouts are often tied to stressful events — car accidents, storm damage or unexpected losses. The faster insurers can get money into customers’ hands, the better the overall claims experience. These scenarios might look like:

  • Instant claims payouts: After a car accident is approved for repair or replacement, insurers can send funds immediately so customers can schedule repairs without waiting for a check to arrive.
  • Emergency disbursements after natural disasters: When a storm or fire displaces families, FTC allows insurers to provide immediate relief funds for hotels, food or transportation.
  • Faster reimbursements for out-of-pocket expenses: Policyholders who pay upfront for towing, rental cars or emergency repairs can be reimbursed instantly once receipts are approved.

Along with the improved customer experience, FTC helps insurance providers with reduced administrative costs. Eliminating paper checks lowers mailing expenses, reduces fraud risk and shortens the claims cycle.

FTC for healthcare organizations

Healthcare organizations’ priorities go beyond clinical care — they’re responsible for the entire patient experience. FTC helps them handle patient payments, refunds and reimbursements with the same level of efficiency and compassion they bring to medical care. Here are just a few tangible ways FTC can make a positive impact:

  • Real-time refunds and reimbursements: When a patient overpays, cancels a procedure or has an insurance adjustment, FTC allows the organization to return funds instantly. Patients feel respected and cared for, which strengthens the overall experience.
  • Preventing financial stress for patients: Instant deposits help patients avoid bounced checks or overdraft fees and give them an accurate, real-time view of their account balance.

Why financial institutions like using FTC

For financial institutions, speed is a competitive advantage. When accountholders can access funds instantly, it transforms their experience and strengthens their relationship with the institution. FTC gives financial institutions the ability to deposit loan proceeds directly into a borrower’s debit account in real time, eliminating the delays and friction that often come with traditional disbursement methods.

When someone needs a personal loan, emergency loan or small business advance, timing matters. FTC allows financial institutions to deliver funds immediately after approval, which borrowers consistently rate as one of the most important factors in choosing a financial institution.

Many institutions report that offering instant payouts leads to more loyal customers. Cardholders return to the same institution because they know they’ll receive funds right away — no questions, uncertainty or delays when it comes to access to funds.

Furthermore, when borrowers know they’ll receive funds instantly upon approval, they’re more likely to complete the application instead of shopping around or dropping off mid‑process.

Improve customer retention and satisfaction through SHAZAM’s gateway solutions

SHAZAM’s ITS Gateway leverages direct access to the U.S. payment rails to create streamlined, efficient and secure financial pipeline for payments. By connecting to our gateway and using FTC, we can provide you access to nearly every U.S. debit card, making those real-world examples become a reality for your business.

Contact us to learn how we can help your company take advantage of better payment availability to meet the evolving needs of modern consumers who expect quick and efficient payment solutions.
 

*Resources

The Clearing House
FedNow

SHAZAM, Inc. and ITS, Inc. provide this blog for general informational purposes only. Our blog may be shared by a direct link wherein the content remains as originally presented and has not been altered. SHAZAM, Inc. and ITS, Inc. assume no responsibility for errors or omissions in the contents on the blog. By using this blog, reader agrees that the information published does not constitute nor is a substitute for legal advice which should only be sought from a qualified, licensed attorney.