Overview

flowchart LR
    A[Merchant/LMS] -->|1: Send transactions| B[Transactions]
    B@{ shape: docs }
    B --> C[FLEX]
    C@{shape: diam }
    C -->|2: Validate + forward payment| D[Payment Network]
    D@{ shape: }
    D -->|3: Deliver funds| E[Card]
    E@{ shape: card }
    D -->|4: Settlement Confirmation| C
    C -->|5: Status update| A

InstaPay Overview

InstaPay enables your business to send funds to customers instantly, typically by pushing money directly to a borrower’s debit card or digital wallet. This method uses real-time card networks to deliver payments in seconds.

InstaPay is ideal for urgent disbursements; no need to wait for bank hours or multi-day processing.

When Should You Use InstaPay?

InstaPay is perfect when you want to:

• Fund a loan immediately after approval
• Reimburse a borrower in real time
• Send same-day payouts to debit cards
• Avoid ACH delays or banking holidays

If your borrower has a supported debit card or wallet, InstaPay is usually the fastest and most borrower-friendly option available.

How Does It Work?

1. You (or your LMS provider) collect the borrower’s eligible debit card or wallet info
2. The system securely tokenizes that info for future use
3. When ready, you initiate a payout through the API or platform
4. The funds are pushed in real time to the borrower’s card via trusted payment rails
5. You get notified whether the payment succeeded or failed

Benefits of InstaPay

• Near-instant deliver - usually under 30 seconds
• Works 24/7/365, including nights and holidays
• Improves customer satisfaction and trust
• Great for repeat disbursements and refunds

Important Notes for Merchants

• Tokenization is required: You’ll need to securely store the card/wallet info ahead of time (done by your LMS or platform provider)
• Not all cards are eligible: Some cards (like prepaid or commercial cards) may not support real-time credentials
• You can’t void InstaPay: Once it’s sent, it cannot be canceled. Refunds require a new transaction or special reversal.
• InstaPay may fail for reasons like closed accounts, unsupported banks, or incorrect card into

InstaPay vs Other Payment Types

Feature	RCC	ACH	InstaPay / RTP
Requires tokenized data?	No	Yes	Yes
Real-time processing?	No	No	Yes
Can be voided?	Yes (depends)	Yes (depends)	No
Requires borrower signature?	No	No	No
Speed	1-3 business days	1-2 business days	Seconds

Summary

InstaPay is great when you want to transfer funds instantly on debit card rails.