Plastiq is a unique new payments service that allows people to make credit card payments for things that would normally require payment by paper checks, wire transfers, money orders or Automated Clearing House payments.
Plastiq can be leveraged by savvy customers to take advantage of generous rewards programs on their credit card by making passive payments through Visa, MasterCard and American Express to merchants who would otherwise only accept debit cards, cheques or cash. So for example if you have a large tax bill, you can pay it off with your credit card -- via Plastiq -- and reap the rewards. You can also use Plastiq to pay things like your recurring rent and utility bills and tuition fees.
The service isn't completely free of course, and you have to be willing to shell out approximately 2.49% per transaction. However this could still help you reap savings depending on the makeup of your rewards plan. Moreover, the convenience of being able to use your credit card to make such payments is undeniable.
What's Driving This Trend
- Rewards Credit Card Programs
- Leveraging services like Plastiq to make payments through credit cards allows customers to take advantage of generous rewards programs.
- Streamlined Payment Solutions
- Plastiq's service offers a convenient and streamlined way for customers to make payments that would normally require checks, wire transfers, or money orders.
- Alternative Payment Methods
- Plastiq provides an alternative method of payment for merchants who would otherwise only accept debit cards, checks, or cash.
Who This Affects Most
- Financial Technology (fintech)
- The FinTech industry can benefit from developing innovative solutions like Plastiq that streamline credit card payments and maximize rewards.
- Retail
- Retailers can explore partnerships with payment services like Plastiq to expand payment options for customers and increase convenience.
- Education
- Institutions in the education sector can offer Plastiq as a payment option for tuition fees, making it easier for students to manage their payments.
