- TodayPay, a new “refunds-as-a-service” startup, has launched out of stealth mode this week.
- TodayPay is founded by former JP Morgan executive Jeremy Balkin.
- TodayPay’s technology decouples the refund from the return logistics to pay customers their refund instantly in their TodayPay mobile wallet.
Jeremy Balkin is leveraging his expertise in the financial services industry to launch a new fintech. The former JP Morgan executive announced this week that TodayPay, what he is calling a “refunds-as-a-service startup,” has exited stealth mode.
At its core, TodayPay helps merchants give their customers instant refunds when they initiate a return. The service also offers the customer multiple options of how they want to receive the funds instead of simply defaulting back to the original payment method.
“I built TodayPay because I’ve seen firsthand how the speed of a payment can change somebody’s life,” said TodayPay Founder Balkin. “There’s over a trillion dollars of value exchanged every year in the form of refunds, yet there’s been almost zero innovation improving the refund customer experience.”
TodayPay offers four main products:
- Better Refund, an API that decouples the refund from the return logistics to pay customers their refund instantly, while allowing merchants seven days to pay.
- Refund Now Pay Later, which provides merchants with a pre-qualified credit line of up to $300,000 with up to 90 days to repay the funds. TodayPay takes on the risk of the return so that the merchant can focus on their working capital.
- instarefund, a consumer facing widget embedded into a merchant’s existing return flow that helps them control the customer experience.
- Management Portal, a merchant-facing dashboard to help businesses manage all transactions in one place and automate refunds and returns management.
These products may improve the returns experience for merchants, however, TodayPay adds a bit more friction onto the customer experience. That’s because customers receive their refund payment in a TodayPay digital wallet. While the digital wallet is already set up via the customer’s phone number, they still have to log into their TodayPay digital wallet to choose how they’d like to redeem their refund– into their bank account, onto their debit card, or via a gift card.
While TodayPay was in stealth mode, it built relationships to be integrated into Shopify, BigCommerce, Woo, and Magento. The company is backed by Soma Capital, and is working with Astra, Marqeta, and Visa for the digital wallet piece.
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