Post Office payout delivers instant cash payments

The way companies issue payments, refunds and product incentives to customers is set to be radically transformed through the launch of the new payout service from the Post Office.

Post Office payout allows companies to distribute promotional incentives and cash payments at a fraction of the cost of issuing cheques. Using the latest barcode technology, companies simply send a reference code by text, email or post which customers take to any of the UK’s 14,000 Post Office branches to receive an instant cash payment.

The Post Office payout solution can be tailored to meet the needs of individual businesses, with identity verification available to provide increased security for higher value transactions. An optional data capture service is also available to allow companies to gather valuable market intelligence about customers’ preferences and purchasing habits.

Not only does payout make it quicker and easier for customers to receive payments, it also removes barriers for businesses making payments to people who do not have a bank account. The service also offers the option to send payments using Postal Orders or gift vouchers for redemption against the companies’ own products or services.

Trials of payout with British Gas and Unilever resulted in extremely positive response rates and feedback from customers, with both organisations now intending to extend the use of the new service.

Post Office marketing director Gary Hockey-Morley said: “Our new payout service not only enables companies to make promotional and incentive campaigns stand out from the crowd, it can also be used to make instant refund and compensation payments. The wide range of payment channels ensures that businesses can expect improved response rates, at the same time as making significant cost savings on campaigns which have previously paid out using cheques.”

FMCG market leader Unilever used the Post Office payout service for fulfillment of an on pack promotion for its Comfort Pearls product.

Unilever direct communication executive Joanna Weston explained: “We didn’t have a clear fulfilment process in place to make a large quantity of small payments to our customer base. This could have been problematic for us as raising a cheque is 600 per cent more expensive than using the Post Office payout postal order service.

“We found the whole process of issuing 22,000 payments was extremely efficient. Very little effort was required on our part. We’ll now definitely consider running more promotions in the knowledge that the fulfilment is taken care of by the Post Office, quickly and cost-effectively.”

The Post Office also used payout to issue new Post Office car insurance customers with £50 cash back.