The news: State Farm will leverage Carat, Fiserv’s omnichannel commerce platform, to pay out approved claims digitally to customers who opt in to the service.
How it works: Eligible policyholders will receive an email or text linking them to a State Farm-branded portal made with Carat’s white-labeled technology. From there, they can select the payment method of their choice, including debit cards, bank accounts, and even digital wallets like PayPal, and receive their disbursement quickly—typically within minutes, Nandan Sheth, Fiserv’s head of Carat and digital commerce, told Insider Intelligence.
Quotable: “Enhancing the consumer experience is why we wanted to get into this, [especially] due to the capabilities and suites of solutions that we can enable for clients,” Sheth said.
What to watch: Extending its disbursements business could cultivate significant volume for Fiserv—especially since State Farm is the largest US auto and home insurer—as customers increasingly eschew cash and checks in favor of digital payment methods, bolstering revenues from Fiserv’s payments and network sector. But the move also foreshadows a broader push into using Carat for payouts and offering disbursement functionality in a variety of emerging categories—presenting a diversification opportunity with a long runway for growth.
