To ensure that individual consumers, families, and companies have near-instant access to insurance funds to deal with unexpected situations or emergencies, One Inc, a digital payments network for the insurance sector, reveals that it intends to disburse claims via Mastercard virtual cards and Mastercard Send.
Powered by One Inc’s product, ClaimsPay, the collaboration aims to build on a vision to provide near-instant, secure payments that offer much-needed cashflow for claimants and vendors while lowering cycle time and expenses for insurance providers.
The partnership is One Inc’s most recent move that’s focused on digitalizing the insurance payments stack with a practical alternative to checks. It has been introduced at a time when virtual card adoption is set to increase to more than $5 trillion in total transaction value by 2025. That’s more than 3x its $1.6 trillion value last year, data from Juniper Research reveals.
Ian Drysdale, CEO at One Inc, stated:
“This partnership with Mastercard empowers insurers to offer greater peace of mind to claimants in the face of unexpected accidents or disaster. Together, we have the ability to transform and facilitate the delivery of funds in near real-time via Mastercard’s virtual cards, providing unique benefits to our vendor network and ever-growing roster of insurance customers. It is another sign of the fast-moving digital evolution in the insurance industry.”
Even though it’s managing trillions of dollars worth of claims payments annually, the US insurance sector depends on outdated, legacy payment options such as paper checks, which may not offer transparency, are 10x more costly for insurance providers to manage, and take around 6-10 days to reach their claimants. Virtual card adoption should help with addressing these issues.
Marie Aloisi, SVP, Business Development, North America, Mastercard, remarked:
“Mastercard is focused on improving the ways people and businesses pay and get paid, providing more choice, security and convenience. Through our collaboration with One Inc and by providing virtual card solutions and near real-time payments with Mastercard Send, we’re helping insurance providers digitize payments so people and businesses can receive their claim payments quickly, securely and into the financial accounts of their choice.”