New research from Blackhawk Network shows that how you access banking services actually determines how you want to receive those funds in the first place.
BHN surveyed over 2,200 U.S. adults to figure out what people really want when businesses send them money — think insurance claims, rebates, refunds, security deposits, or those sweet incentive payments. The results? It’s complicated, and one-size-fits-all definitely doesn’t fit all.
Fast Money Matters, But It’s Not the Whole Story
Let’s start with the obvious: People want their money quickly. About 53% of respondents said speed matters, while 45% want to use funds immediately. No surprises there. Waiting around for money that’s already yours is about as fun as waiting for your cable guy (remember those four-hour windows?).
But here’s where it gets interesting. Once you dig past that surface-level need for speed, people’s preferences split dramatically based on their banking access. And companies that ignore these differences are basically designing payout programs with blinders on.
“Organizations often focus on how quickly they can deliver payouts,” explains Stacie Monjauze, Sr. Director of Business Development at BHN. “Our research shows that’s only part of the equation. Recipients have different needs based on how they access and manage their money, making flexibility and recipient choice important considerations when designing payout programs.”
Banking Access Changes the Game
The research zeroed in on three groups: fully banked consumers (full access to traditional banking), underbanked folks (limited access), and unbanked individuals (no traditional banking access at all). Turns out, these groups have distinctly different preferences about how they want to receive money.
Across the board, cash-equivalent payouts and gift cards came out as popular options. But unbanked and underbanked consumers showed much stronger preferences overall. They care more about their options — and for good reason. When you don’t have seamless access to traditional banking, the method matters a whole lot more.
Digital Wallets: Not Just a Nice-to-Have
Remember when digital wallets seemed like a gimmick? Those days are gone. The ability to add funds to a digital wallet matters significantly to people without full banking access.
Here’s the data: 46% of unbanked and underbanked respondents said adding digital gift card funds to a digital wallet was very important. Compare that to just 29% of fully banked consumers. That’s not a small gap — that’s a canyon.
The takeaway? For many people, getting paid isn’t just about receiving funds. It’s about being able to actually use them in ways that work with their daily life. Digital wallet functionality can make the difference between a convenient payout and one that creates unnecessary hassles.
Paper Checks: The Frustration Is Real
If you want to see how banking access shapes the payout experience, just look at paper checks. They’re still everywhere, but they’re not making everyone happy.
Nearly two-thirds (63%) of unbanked and underbanked consumers said they feel frustrated when they receive a paper check as a payout. For fully banked consumers, that frustration rate drops to 46%. Still high, but notably lower.
Think about why: If you have a traditional bank account, depositing a check is relatively painless (though still annoying compared to digital options). If you don’t? You’re looking at check-cashing fees, trips to specific locations, and a whole bunch of friction between you and your money.
What This Means for Businesses
Companies distributing payouts across industries — insurance, legal, retail, real estate, you name it — need to rethink their approach. Speed matters, absolutely. But recipient choice and flexibility might matter even more.
The full research report digs into additional findings about different payment amounts, whether people will pay for faster access, and various behaviors around prepaid cards, merchant credit, and gift cards. But the core message is clear: Understanding your recipients’ banking access isn’t just nice demographic data. It’s essential to creating payout experiences that actually work for the people receiving them.
Because at the end of the day, the best payout method isn’t the one that’s easiest for your finance department. It’s the one that gets money into people’s hands — or digital wallets — in a way they can actually use without jumping through hoops.