TodayPay, a B2B technology company, emerged from stealth mode at Money 20/20 in Las Vegas, introducing a rapid refund solution for merchants to provide customers with immediate refunds across various payment options.
The company offers “Refunds as a Service,” a suite of alternative refund solutions aimed at enhancing the refund process for merchants and consumers. With the motto “My Money, My Choice,” TodayPay caters to ecommerce merchants, marketplaces, logistics providers and insurance companies. Its goal is to boost checkout conversion rates, foster loyalty-driven sales, and mitigate costly disputes and fraud.
Jeremy Balkin, TodayPay‘s founder and chief executive officer and former head of fintech at J.P. Morgan, highlighted the significance of swift payments and the need for innovation in the refund experience, considering the enormous value exchanged annually through refunds. TodayPay distinguishes itself by decoupling the refund (a payment solution) from the return (a logistics challenge). “This helps merchants compete end-to-end on customer experience based on the speed of a payment, instead of the speed of broken supply chains,” said Balkin.
In 2022, the US Census Bureau reported $7.1t in total US retail sales, with approximately one-fifth of purchases being returned annually. Online purchases have a considerably higher return rate compared to in-store purchases. Research by the Baymard Institute revealed industry-wide cart abandonment rates of 70%, and disputes cost merchants and consumers a substantial $100b each year. Return fraud, according to the National Retailers Federation, incurs an estimated cost of 10.7% per transaction, affecting both merchants and consumers.
Balkin emphasised the inadequacy of traditional refund processes, describing them as monolithic, inflexible and uncertain, often leaving consumers unaware that their refunds may not return to their bank accounts.
TodayPay’s stealth mode operations garnered significant interest, including support from Visa. Patrick Williams, vice president and head of accounts of Global and North America Fintech Partnerships at Visa, said: “Expanding access to financial tools and services is core to Visa’s purpose. And we’re excited to work with companies like TodayPay in bringing new solutions and approaches to this challenge.”
TodayPay’s early success has earned recognition across the industry, earning the company a finalist position for Startup of the Year, with the winner to be revealed at the upcoming US FinTech Awards in New York City.
Amazon Web Services (AWS) is serving as the underlying technology powering TodayPay’s journey to make financial services a “fairer, more seamless experience for consumers,” said Sam Edge, Global Head of Fintech Startups at AWS.
Todd Pollak, chief revenue officer of Marqeta, commented: “Marqeta’s platform gives high-growth companies like TodayPay the flexibility and control needed to overhaul a traditional market like returns, to reduce friction and deliver a seamless experience for their customers.”