ScrapRight introduces payout platform

Pennsylvania-based recycling-focused software provider ScrapRight has partnered with global financial technology (fintech) firm Onbe on a platform to efficiently pay customers at retail scrap yards.

The service can be made instantly available to the 600 recycling facilities that already use ScrapRight software. The vendor says the new payout platform will be particularly welcome in states that restrict the use of cash in such scale house transactions.

“Integrating ScrapRight’s platform with Onbe’s digital payouts gateway alleviates compliance concerns by replacing cash with modern and instant payouts that align with state regulations,” ScrapRight says.

While some metal recycling companies have responded to cash restrictions by paying retail scrap customers with checks, Onbe and ScrapRight say their offering “equips scrap yards to provide a more accessible experience for sellers lacking access to traditional banking services.”

The Federal Deposit Insurance Corp. reports that nearly 19 percent of households in the United States were unbanked or underbanked in 2021.

The vendors say with the use of their virtual and physical prepaid cards, a bank account is not required. Recipients receive funds instantly and have a choice in off-the-card options such as adding funds to existing payment apps and mobile wallets.

“Onbe is proud to partner with ScrapRight to bring the convenience and choice-driven solutions provided by instant payouts to the recycling sector, helping them better serve their diverse sellers,” says Melissa Hentschel, chief client officer of the Chicago-based fintech firm.

“Today, the overwhelming majority of consumers prefer digital payment options, and our solution equips scrap yards to meet this demand by leveraging the industry-leading recycling management platform they rely on daily."

Georgia, Wisconsin, California, Colorado and Iowa currently have restrictions that hinder or outright ban the use of cash payments in retail scrap transactions.

Via the new platform, scrap yards are “alleviated of the compliance concerns associated with these regulations while reducing the cost of processing these payouts via check, which can be up to $12 to issue,” ScrapRight says.

“Making the switch from cash to instantly issued physical and virtual cards is not just the law in many states, it’s also more secure and cost-effective,” ScrapRight founder and CEO Shon Duty says.

“As the latest addition to our end-to-end platform, Onbe’s digital payouts gateway lets scrap yards eliminate the risk and expense of cash management, simplify their operations, and provide a better payout experience—a win for our customers and their sellers."

By using the system, recycling facility owners can save time and resources by offloading the administrative burden of managing payouts, including the complexities of handling unclaimed property, the vendors say.

“Streamlining the payout process while standing out with a seamless seller experience is key to helping scrap yards scale efficiently and maximize their profits in the coming years,” ScrapRight adds.