Loan Disbursement
Loan disbursement refers to the process of providing approved loan funds to a borrower. This can be done through various methods, including direct bank transfers, cheques, or prepaid cards and represents one of the two payment-specific elements of loan origination or creation, the other being repayment or collections. Originations can be automated and occur instantly at point-of-sale, especially in fintech environments. Often, disbursement speed is a key consideration for which payment method to choose, however the size of the payment and associated fees are important as well.
Applications
E-commerce:
Reduces fraud in online card payments by verifying the cardholder's identity
E-commerce:
Reduces fraud in online card payments by verifying the cardholder's identity
Advantages
- Enhanced security: Reduces unauthorised transactions by verifying that the genuine account holder is authorising the payment
- Enhanced security: Reduces unauthorised transactions by verifying that the genuine account holder is authorising the payment
Challenges
- User Experience: Additional authentication steps can cause friction and increase checkout abandonment
- User Experience: Additional authentication steps can cause friction and increase checkout abandonment
