Western Alliance and Digital Disbursements Finds Extraordinary Success Rate for Digital Payments in Inaugural Report
According to new research from Western Alliance Bank and Digital Disbursements, getting money into the hands of payees in class action and mass tort settlements is far more effective and efficient when those payments are completed through digital methods rather than traditional paper checks.
Among the key findings of the inaugural Digital Payments in Class Actions and Mass Torts report: When claimants are offered a broad pay menu, the success rate for digital payments is 98%. That compares to a weighted average check cash rate of only 77% in cases with a claims process and only 55% in cases without a claims process, according to a 2019 study by the Federal Trade Commission.
The report, which relies on Digital Disbursements’ proprietary data set, making it likely the largest study to date on the distribution of settlement payments in the legal industry, also found that digital payments are becoming increasingly commonplace and that payees increasingly prefer digital payments.
Key Topics Addressed In the Report:
The most popular digital payment methods
Which courts and law firms are embracing digital payments
A look into some of the reasons digital payments are proving so popular