In the last few years, tech advancements have empowered small and medium businesses (SMBs) to easily accept a large number of payments digitally every day. However, when it comes to paying their vendors, SMBs are not always able to access their money immediately as these digital payments usually get transferred to their bank account after a couple of days.
While accepting payments digitally from customers is convenient, liquidity is something that gets sacrificed in the process. Immediate access to funds is paramount for businesses as they have to take care of working capital expenses and fulfill inventory requirements.
A peek into the working of a payment gateway
On the face of it, accepting payments digitally looks like a breeze. But in the backend a lot of checks and balances are done before the money can reflect in the merchant’s bank account. In fintech parlance, these checks and balances are called reconciliation processes.
Apart from Paytm Payment Gateway, all payment gateways take about two days to complete the reconciliation, which includes checking for cashbacks, discounts, refunds, and platform commissions. And if the payment happens on a weekend or public holidays, this might take even longer.
However, merchants who use Paytm Payment Gateway receive money in T+1 days in their bank account, irrespective of holidays or weekends. Simply put, if ‘T’ is the day of the transaction, the merchant’s bank account gets credited the next day. For other payment gateways, the settlement happens in T+2 days or even longer.
In our effort to let our merchants start using their money even sooner, Paytm Payment Gateway also has a premium feature of same day settlement. This makes it easy for SMBs to get money in their bank account instantly.
Top five features of same day settlements
Same day settlement with a small fee on withdrawals enables businesses in various ways. Let’s talk about the five most important features:
- Single click settlement: Although, transferring funds in the bank account involves multiple parties, as a merchant you don’t have to worry about anything. Paytm Payment Gateway allows you to transfer money in your bank account hassle free with just a single click
- Ease of tracking: As we process your settlement in the backend, you can track each and every transaction through the Paytm dashboard
- Available 365 days: For immediate cash requirements, merchants can choose to pay a small fee to immediately receive money in their bank account even on public and bank holidays. We are available seven days a week, really
- Multiple doors, one key: If a merchant receives payment from more than one source for a single order, our payment gateway is trained to reconcile this into a single payment without any glitch. Alternatively, a merchant can also transfer a part of their money to the bank account and the rest to their Paytm Wallet
- Minimum limit: Using Paytm’s Payment Gateway, merchants can transfer as little as Rs. 50 to their bank account on the same day. The cap for same day settlement is Rs. 2 lakh
Businesses that urgently need same day settlements
Our payment gateway solutions are designed to help businesses access their money without any delay. While this is true for all kinds of merchants, a few of them, depending on the nature of their business, do require this feature more urgently.
Some of the businesses where same day settlement can help include:
- Businesses dependent on gig workers: Businesses that employ gig workers such as delivery persons, primarily rely on digital payments. They deal with high frequency payments, which include larger amounts. One of their primary functions is to fulfil customer orders as soon as possible. Any hiccup in cash flow can delay the order fulfilment and can severely impact the merchants’ image in the market
- Entertainment: Merchants such as online gaming providers or game parlours frequently hold gaming competitions. This is their major marketing effort to ensure players keep coming in. They need cash on a daily basis to provide award money to the winners
- Inventory-led businesses: Offline merchants such as grocery stores, milk parlours, etc. are always in need of sufficient cash to replenish their inventory and increase the stock volume
Paytm Payment Gateway’s take on same day settlements
Same day settlement is indeed a need of the hour for all the small and large scale businesses. It will help them overcome the challenges of lack of funds and handle their operational expenses such as payroll and bill payments. For a nominal fee, SMBs can get their money to work the very same day their customers pay them.
The product is crafted to give merchants financial freedom never experienced before. To ensure the product is accessible to everyone, we have made the process simple and easy to use, just like making a cup of coffee.
So, why wait? Sign up now and make the most of this cool product today and take your business to the next level!