SAN FRANCISCO & CHANTILLY, Va.--()--BillFloat, Inc., the nation’s only provider of small-dollar loans for consumer bill payment, today announced that it has entered into an agreement with Online Resources Corporation (Nasdaq: ORCC), a leading provider of online financial services.
“BillFloat provides our biller clients the ability to address a critical consumer need by offering the short term payment extensions”
Under the strategic agreement, Online Resources will extend its biller-direct suite of electronic bill payment, presentment and receivables solutions by marketing BillFloat as a consumer payment option. BillFloat helps consumers avoid late fees, bank overdraft charges and expensive loans when paying critical bills during a cash flow crunch.
BillFloat combines its flexible bill payment and patent-pending underwriting technology with a nationwide network of registered lenders to alleviate the cash flow and collections problems of billers and their customers. Online Resources will make BillFloat available to its extensive customer base of billers that include financial services, utility, telecommunications, insurance and healthcare organizations.
“BillFloat provides our biller clients the ability to address a critical consumer need by offering the short term payment extensions,” said Robert Craig, executive vice president of eCommerce Services for Online Resources. “Together with BillFloat we can help our clients improve their cash flow, retain customers and eliminate the complexities and real costs associated with delinquency. Helping billers manage risk and improve the percentage of on-time customer bill payments is central to our business. BillFloat supports our goals on all levels.”
“Our partnership with Online Resources is a tremendous endorsement of our solution,” said Ryan Gilbert, BillFloat CEO. “Online Resources shares our focus on using smart technology and business processes to streamline and enhance interactions between billers and their customers. By joining forces with Online Resources we will energize a market sector that has been impacted by the recession and starved of innovation for an extended period of time.”
BillFloat is quickly establishing a clear market leadership position in offering a consumer-centric bill payment solution to the 61% of US workers that live paycheck to paycheck. BillFloat’s lending partners offer consumers short-term loans at a 3% monthly rate of interest, based on the recommendations of the FDIC’s Small-Dollar Loan Template. This interest rate is several times lower than that available from alternative sources of short-term loans. BillFloat’s consumer customers are able to qualify and obtain small-dollar loans in real time through a simple to use application process online. The proceeds are applied to bills owed by the consumer to BillFloat’s clients and partners.
About Online Resources
Online Resources (NASDAQ: ORCC) powers financial interactions between millions of consumers and the company’s financial institution and biller clients. Backed by its proprietary payments gateway that links banks directly with billers, the company provides web and phone-based financial services, electronic payments and marketing services to drive consumer adoption. Founded in 1989, Online Resources is the largest financial technology provider dedicated to the online channel. For more information, visit www.orcc.com.
About BillFloat, Inc.
BillFloat operates the nation’s first bill payment network offering alternative credit options to help consumers avoid late fees, overdraft charges, service termination, and high interest loans. Billers, including cell phone/cable companies, utility providers, and insurers, accelerate their cash flow through BillFloat’s easy to implement and secure system. The service is available on billers’ websites, leading content websites such as Credit.com, and through financial services partners including payment card issuers, payroll services, walk-in payment centers, and at www.billfloat.com. BillFloat was founded in 2009 by a team of experienced financial services entrepreneurs with investment and technology backing from PayPal, Venrock and First Round Capital. For more information, visit www.billfloat.com.
Online Resources Corporation
This news release contains statements about future events and expectations, which are "forward-looking statements." Any statement in this release that is not a statement of historical fact may be deemed to be a forward-looking statement. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Specifically factors that might cause such a difference include, but are not limited to the Company’s: history of losses; dependence on the marketing efforts of third parties; potential fluctuations in operating results; ability to make and successfully integrate acquisitions of new businesses; potential need for additional capital; potential inability to prevent systems failures and security breaches; potential inability to expand services and related products in the event of substantial increases in demand; competition; ability to attract and retain skilled personnel; reliance on patents and other intellectual property; exposure to the early stage of market adoption of the services it offers; exposure to the consolidation of the banking and financial services industry; and additional risks and uncertainties discussed in filings made by the Company with the Securities and Exchange Commission, including those risks and uncertainties contained under the heading "Risk Factors" in the Company's Form 10-K, latest 10-Q, and S-3 as filed with the Securities and Exchange Commission. These factors should be considered in evaluating the forward-looking statements, and undue reliance should not be placed on such statements.
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