Onbe and ScrapRight revolutionize scrap yard payouts

The partnership is aimed at enhancing security and accessibility for over 600 scrap yards and their numerous sellers. The collaboration involves integrating ScrapRight's platform with Onbe's digital payout gateway to facilitate the transition from traditional cash or check payments to modern and instant options for sellers.

Traditionally, some scrap yards have relied on checks for payouts. However, Onbe and ScrapRight's solution offers scrap yards the capability to provide sellers with more accessible payout methods in line with their preferences. According to Onbe's 2024 Payouts Landscape, 92% of consumers prefer digital or electronic payment methods. Through features like instant issue, virtual and physical cards, sellers can receive funds promptly and choose from various off-the-card options, including adding funds to popular payment apps and mobile wallets for convenient bill payment and spending.

Onbe representatives expressed pride in the partnership, emphasizing the aim to offer convenience and choice-driven solutions to the recycling sector. This move aligns with consumer preferences for digital payment options and enables scrap yards to meet evolving demands effectively.

The partnership addresses regulatory changes affecting scrap yards, particularly in states with new laws restricting or prohibiting cash payments for recommerce transactions. By replacing cash with fast and flexible payouts, the collaboration assists scrap yards in compliance efforts while enhancing the payout experience for sellers, regardless of their banking status.

Representatives at ScrapRight highlighted the transition from cash to other payment methods as not only a legal requirement in many states but also a more secure and cost-effective approach. The integration of Onbe's digital payouts gateway into ScrapRight's platform enables scrap yards to eliminate the risks and expenses associated with cash management while streamlining operations and enhancing the payout experience for sellers.

Through the partnership, scrap yards can optimize resource allocation by delegating the administrative tasks of managing payouts to Onbe and ScrapRight. Additionally, they can reduce expenses associated with processing payouts via checks and mitigate concerns related to escheatment. By simplifying the payout process, scrap yards can enhance seller experience and position themselves for efficient scaling and increased profitability in the future.