Much of the attention of the Paycheck Protection Program has been on the automation of the approval process; this was certainly an important step as companies such as Kabbage dealt with hundreds of thousands of loan applications; what has been overlooked is the disbursement of these loans; Kabbage supports a number of different digital disbursement methods including ACH, debit card push payments, wire transfers and disbursements to PayPal-supported online wallets but all the PPP loans were disbursed via ACH; Kabbage president and co-founder, Kathryn Petralia explains, “Because we are serving customers with lots of different accounts at lots of different banks, ACH made the most sense for us. Plus, it allowed us to mitigate fraud risk because we could verify the [SMBs’] ownership of that account.” PYMNTS.
Peter Renton is the chairman and co-founder of LendIt Fintech, the world’s first and largest digital media and events company focused on fintech. Peter has been writing about fintech since 2010 and he is the author and creator of the Fintech One-on-One Podcast, the first and longest-running fintech interview series. Peter has been interviewed by the Wall Street Journal, Bloomberg, The New York Times, CNBC, CNN, Fortune, NPR, Fox Business News, the Financial Times, and dozens of other publications.