Onbe has partnered with ScrapRight to make payouts more compliant and accessible for scrapyards and sellers. Nearly half of these scrapyards are in states with new laws that restrict or prohibit cash payments for recommerce transactions. Integrating ScrapRight's platform with Onbe's digital payout gateway alleviates compliance concerns by replacing cash with instant payouts that align with state regulations.
While some scrapyards have responded to cash restrictions by paying with checks, Onbe and ScrapRight's solution equips scrapyards to provide an accessible experience for sellers lacking access to traditional banking services. Nearly 19 percent of U.S. households were unbanked or underbanked in 2021, according to the most recent data from the Federal Deposit Insurance Corporation (FDIC). With Onbe and Scrapright's instant issue of virtual and physical prepaid cards, a bank account is not required, and recipients receive funds instantly. Plus, they can choose off-the-card options such as adding funds to popular payment apps and mobile wallets for easy bill pay and spending.
"Onbe is proud to partner with ScrapRight to bring the convenience and choice-driven solutions provided by instant payouts to the recycling sector, helping them better serve their diverse sellers," said Melissa Hentschel, chief client officer of Onbe. "Today, the overwhelming majority of consumers prefer digital payment options, and our solution equips scrap yards to meet this demand by leveraging the industry-leading recycling management platform they rely on daily."
States including Georgia, Wisconsin, California, Colorado, and Iowa are impacted by the restrictions that hinder or outright ban the use of cash payments in recommerce. Through the partnership between Onbe and ScrapRight, scrapyards are alleviated of the compliance concerns associated with these regulations while reducing the cost of processing these payouts via check, which can be up to $12 to issue.
"Making the switch from cash to instantly issued physical and virtual cards is not just the law in many states; it's also more secure and cost-effective," said Shon Duty, founder and chief executive officer of ScrapRight. "As the latest addition to our end-to-end platform, Onbe's digital payouts gateway lets scrapyards eliminate the risk and expense of cash management, simplify their operations, and provide a better payout experience – a win for our customers and their sellers."
This partnership will allow scrapyards to save time and resources by offloading the administrative burden of managing payouts, including the complexities of handling unclaimed property. Streamlining the payout process while standing out with a seller experience is key to helping scrapyards scale efficiently and maximize profits.
