Onbe and Allied Solutions announced a partnership on Thursday designed to help financial institutions, finance companies, dealerships and their clients modernize the automotive refund process.

The partnership is fueled by Allied Solutions’ Refund Plus solution, which offers comprehensive support for issuing refunds following the cancellation of aftermarket products including guaranteed asset protection (GAP), vehicle service contracts, and credit life and disability.

Now Refund Plus clients can gain access to Onbe’s digital payouts gateway, streamlining operations, reducing cost and compliance risk, while delivering a modern, choice-driven refund experience for consumers.

By leveraging Onbe’s payout platform, Refund Plus clients also can digitize their refund operations, eliminating the need for checks.

Together, Onbe and Allied Solutions said they are helping lenders reduce operational burden by reducing manual work related to exceptions and unclaimed property handling.

The company said their clients will also have access to faster payment delivery with built-in audit trails, allowing them to stay ahead of evolving regulations.

“Digital payment options aren’t just most consumers’ preference. They’re the most efficient choice for teams racing the clock to deliver refunds promptly,” Onbe chief client officer Melissa Hentschel said. “We’re thrilled to join Allied Solutions in modernizing the auto refund process, eliminating delays and creating efficiencies while providing a choice-driven customer experience.”

The companies went on to say that consumers can benefit from a faster, more transparent digital-first refund experience aligned with how they pay.

Recipients can choose from virtual cards with mobile wallet provisioning, popular payment apps, or ACH and other legacy payment options when required.

Onbe and Allied Solutions claim that 88% of auto finance consumers say digital payouts are more convenient than checks. As a result, the companies said digital refunds not only improve customer satisfaction and brand perception but also boost deliverability and minimize call center escalations related to late or lost payments.

“As evolving regulations continue to increase the burden on financial institutions, streamlining the refund process has never been more critical,” said Angelo Marchese, director of product and vendor, risk and recovery products for Allied Solutions.

“Our partnership with Onbe comes at the perfect time and enhances our already comprehensive solution with even more tools, capabilities and payment choices to help our clients prepare for the future,” Marchese went on to say.