Cashless transactions are increasingly replacing traditional methods of payments in India. While customers or buyers have been its biggest beneficiaries, online payments have also made accounting easier for merchants in more ways than one. They are now able to instantly track funds, monitor spends and access all their finances at the click of a button.
Digital wallets are a popular payment option for cashless transactions and the country has seen a significant surge in their usage. The estimated value of mobile wallet transactions in 2020 across India was 36.5 trn. rupees. This is expected to more than triple by 2024.
Paytm Wallet has been instrumental in helping businesses move from cash to digital payments and efficiently manage their finances. The switch to cashless fuel transactions by Cars24 – a pre-owned cars platform, with the help of Paytm Wallet, is a perfect example of how businesses can effectively handle their cash flows by implementing the right solutions.
Cars24 is an e-commerce platform for buying – selling pre-owned cars and offers a wide option of certified automobiles to its customers across India. Their cutting-edge technology and a deep understanding of buyers’ needs has helped Cars24 solve the challenges associated with the selling and purchasing of pre-owned cars.
With a large catalogue of cars of every make and model, customers can choose their preferred one through a quick, transparent, and hassle-free process. The certified cars are home delivered at a click of a button.
Set up in 2015, Cars24 now has over 205 branches across 182 major cities in India with close to 4 lakh customers who have used the platform. Cars24 effectively overcomes the tedious processes of connecting with the owner, negotiating on the vehicle price, examining the condition, RC transfer, money transfer and so on.
Buying cars is simplified to match any other online purchase along with additional benefits such as easy financing options and a 6-month warranty on each car.
The problem statement: optimising fuel payments
Most of the Car 24’s inventory is stationed at parking lots away from their showrooms and city centres. Whenever buyers are interested in a vehicle, it is usually driven from the depot to the designated location. Similarly, when automobiles are sold on Cars24, their drivers transport them to the respective parking stations.
Since Cars24 deals with car movement at each leg in the system, continuous fuel consumption is a crucial part of the daily operations. Their team of around 800 drivers across India is responsible for fuelling the cars during their transport from one location to another.
The majority of the transactions at the fuel stations were being done in cash and it was a complex task for Cars24 to keep track of the payments, issue fuel reimbursements to drivers and verify all the bills.
The company had been looking for a product that could simplify the process around fuel procurement and eliminate manual interventions.
The solution: moving to a digital wallet
To ensure cashless transactions and quick refuelling, Cars24 switched to the Paytm Fuel Wallet to manage all fuel-related expenses. The money is now transferred instantly to each driver’s mobile wallet so that they can scan the QR code at the fuel stations and use the digital fuel wallet balance for payments.
This switch has eliminated the need for any additional documents, pending bills or chances of cash being misplaced. Cars24 is now able to expend an amount of Rs 10 lakh every day to their drivers across India through the Paytm Fuel Wallet with an absolute clarity about each penny being spent for the driver’s fuel reimbursement.
The product has a strong backend support through Paytm Payouts dashboard that also allowed Cars24 to channelize their approval workflows for distribution of these reimbursements.The Paytm Payouts dashboard helps Cars24, easily dispense money to multiple wallets.
Through the comprehensive reports generated by the automated dashboard, the company is also able to analyse the spends of each wallet to understand and assess the fuel requirement for a certain location and route.
The money is transferred at a pre-decided frequency directly to their wallets and all the records are captured in the payment history. It has helped the company control leakages (10% fuel cost) within their system and created a more robust and efficient process.
Moreover, having identified Cars24’s need for greater accessibility to Paytm QR-enabled fuel stations, Paytm has additionally empowered 40 additional stations with the code. This has made it easier for drivers to refuel cars close to their location and along the regular driving routes.
Paytm was able to solve the cash leakage issue for us with minimal support from our end. We are grateful for the kind of enterprise experience we had with the Paytm team. Also, the overall implementation in less than a month was amazing. All the SLAs were always met and we are extremely satisfied with the product.
Naseem – Operations, Cars24
About Paytm Wallet
Paytm Wallet is an RBI-approved digital wallet for online payments. Paytm Wallet is extremely useful for businesses to systematically disburse funds across departments and even to vendors, channels, sales teams and partners. They can easily monitor the money in a single place and do away with the manual task of maintaining accounts.
Paytm Wallet allows merchants to have sub-wallets for multiple use-cases. The options include:
Food wallet: A tax-free food allowance wallet that can be used for restaurant dining as well as delivery
Gift Wallet: A wallet for employee gifting that can be used for recognitions related to promotions and achievements
Fuel wallet: A wallet to facilitate fuel payments and reimbursements across all major fuel stations in India
Allowance wallet: A customised wallet for all types of employee allowances such as travel, phone, entertainment, medical and so on
With close to 333 million registered users, Paytm offers one of the best digital wallets in India for businesses to effortlessly streamline their payments and ensure seamless transactions. In addition to making online payments swifter and easier, Paytm Wallet helps businesses establish better processes and iron out payment-related inefficiencies.