What is last-mile disbursement?
Last-mile disbursement of funds refers to getting money to its final destination.
This is always the hardest part of the distribution chain and is no different for disbursing funds.
In the case of consumer finance, the bank or lender is holding the money, which ultimately needs to get to all the merchants whose customers have taken out loans to pay for their purchases.
It is not practical to use ACH on what could be 1000 merchants. By using a digital credit card transaction to arrange the transfer of funds, it is much easier to scale the loan program.
See also Disbursed funds.