This week, Onbe launched a digital-first consumer refund program with Westlake Financial.

According to a news release, Westlake has replaced its check-based refund program with Onbe’s payouts gateway, providing instant payments to recipients while eliminating internal program and labor costs.

Onbe’s Summer 2023 Auto Survey showed 47% of automotive customers name wait time as the leading cause of frustration with their payout experience. Onbe acknowledged refund checks can take weeks to be processed and delivered, and Onbe’s survey found that more than half of consumers don’t get to choose an alternative payment option.

Checks are the most expensive way to issue a disbursement, costing up to $12 per payment when the cost of labor is factored in, according to the Association for Financial Professionals (AFP).

Westlake’s new refund program replaces checks with instant digital payments, offering their auto finance customers a choice of popular and cost-effective payment methods, including custom-branded virtual cards that can be accessed and spent immediately.

Fundamental to the efficiency of the program, Onbe’s proprietary escheatment management solution, StateSmart, can eliminate Westlake’s compliance risk and reduces administrative burden.

“Onbe removed the internal costs and labor associated with our processes while creating a more user-friendly payment experience for our customers,” Westlake senior vice president of operations John Mason said in a news release from Onbe. “Meeting customers’ expectations for a faster, more convenient payment experience was a goal, and Onbe’s digital refund solution decreased wait times dramatically.”

As consumer demand for digital payments meets businesses’ drive to reduce the cost and labor of issuing payouts, Onbe said automotive finance companies such as Westlake will increasingly benefit from using a payouts platform to modernize and streamline their legacy payment processes.

“We are proud to work alongside Westlake to modernize its automotive loan overpayment refund program, reducing cost and risk while extending Westlake’s excellent consumer lending experience beyond the life of the loan,” Onbe chief product officer Tracy Monson said.

“A transformed automotive refund process means Westlake can offer their customers modern and digital payout choices while operating with maximum efficiency—essential to keep pace with customers’ preference for payment speed, choice, and convenience,” Monson went on to say.

To learn more about Onbe’s automotive payout solutions, go to https://www.onbe.com/industries/automotive.