India is at the forefront of the digital payment revolution. The massive success of real-time payment systems like UPI & IMPS for small-ticket payments is well known.
Both of these factors collectively contribute to roughly 2.6 bn transactions a month.
In the recent past, RBI has operationalised round the clock RTGS/NEFT transactions on all days of the year, thereby facilitating small and large ticket payments.
With this move, any business can instantly send their choice of amount to anyone at any point of time in the day.
To put this into perspective, many developed economies around the world still do not have any real-time payment systems available.
With this system in place, SMEs and Large Enterprises can manage their cash flows and working capital in a much better fashion.
Treasury challenges with business payments
Usually, it takes a lot of time and effort for an organization to process payments.
The transactional process is tedious and time-consuming as it goes through several steps of technicalities associated with approval, uploads, and more, before it finally goes through.
Here is a brief glimpse of the general steps this involves:
- The finance team initiates a long chain of necessary approvals and follow-ups and sends it to the treasury department
- The treasury team uploads these files on their banking dashboards to process payments
This process too, however, doesn’t come without its challenges. Some of these challenges can be:
- Tracking & chasing manual approvals that, in turn, waste a lot of time and energy
- Payment delays that are caused due to manual payment processing
- Risk of fraud or delays posed by manual reconciliation
- Hard to track cash positions or idle balances
- Money transfer failures due to bank technology system issues
- Error-prone and non-user-friendly internet banking dashboards
Paytm’s payout problem
In this technology-laden era, banking businesses consider themselves as technology companies compared to the early 2000s when they had started calling themselves “banks powered by technology.”
This shift in the mindset is for a reason.
Both consumers and businesses in this era want the best products and services instantly and that is almost impossible without technology.
For instance, today, opening a Paytm Payments Bank Account is just a matter of a few seconds.
The payment processing takes milliseconds, reconciliation is automated and real-time, and with artificial intelligence and its increasing applications, we at Paytm are able to identify and block fraud transactions in real-time.
We saw the love for Paytm growing overnight after demonetization in India in 2016. This love was for its incredible product offering of the time, the Paytm Wallet.
The Paytm Wallet emerged as a secure digital wallet that lets you manage your money with a touch; pay bills, make recharges, send money to friends & pay for purchases across various brands and services through its product offerings across a wide spectrum.
These products served as the most convenient ways to manage day-to-day transactions.
That, of course, called out for more ways to make our customers’ lives easier and gave way to questions associated with expanding the range of our services, like:
- How do we instantly give our customers cashback offers when they make a purchase?
- With the Paytm QR Code becoming a norm at every small and big shop, how do we pay our merchants on time?
- Our own employees at Paytm were looking to save on tax using meal vouchers.Cards were a popular choice in those days but we firmly believed that smartphones would be the most convenient way to make payments and will revolutionise the payment system for the country, which brought us to the question of why the system of food allowance cannot be digitised through mobiles just like the Paytm Wallet
- With 1000s of vendors to pay every month, and approvals and payments for every invoice still being managed manually, how could we automate vendor payments and digitise the approval and reconciliation system
With such problems associated with payouts standing in the course of our own business, Paytm Payouts was born to solve all of the above issues while providing our customers, merchants, vendors & employees with the best experience of the same.
With its homegrown success, it was pretty evident that payouts could be scaled for every business in India.
With increasingly pacing market research, time, effort and technological developments over time, we are now in a position to provide payouts solutions to any, and every business that requires them for efficient functioning.
The range of the solutions we offer includes:
- Money transfers – Use APIs or Dashboard to automate all payouts to Paytm Wallet, bank accounts, Paytm Gold and much more
- Employee tax benefits – Give your employees a 100% digital tax benefit solution with Paytm Food Wallet, Paytm Gift Wallet and much more
- Customer refunds & cashbacks – Send instant cashback and refunds to customers to their UPI VPA, bank accounts, Paytm Wallet, credit/debit cards or even mobile number when you don’t know their account details
- Enterprise bill payment – Manage utility and mobile bills across 1000s of stores with our easy-to-use software. We auto fetch all bills and allow you to make bulk payments instantly
- Vendor payments – Invoice processing is one of the biggest pain points of finance teams across different organizations. With vendor login, built-in approval workflows and automatic payments, Payouts can automate this from end to end.
Value of real-time payment & reconciliation APIs
Every operation you perform digitally on a daily basis, from posting on social media, viewing your news feed, logging into a mobile application, and deleting a comment is powered by APIs.
APIs are also used to send money, reduce manual errors, increase operational efficiency and process millions of payments in no time.
Additionally, they can be used to see the real-time status of every transaction and send automatic reminders to facilitate approvals.
Paytm Payouts is API-first and provides APIs for every operation as below.
- Account APIs – Create sub-accounts for budget management, view real-time balances, get statements for automated reconciliation
- Contact APIs – Add, edit, view beneficiary details instantly
- Payout APIs – Transfer to bank account, UPI address, Paytm Wallet, Paytm Food/Gift Wallet, Gold, Mobile Recharge, Utility Payment instantly using our Payout APIs. Also, check the status in real-time and handle reversals automatically using webhooks
- Payout Link APIs – Send link to the customer to pay when you do not know customer bank account details and also track status in real-time
- Account Validation APIs – Validate if an account exists and also the name of the account holder for bank accounts, wallets, UPI address instantly
For developers, we provide additional features like:
- Dedicated integration environment for testing and support from the integration team in case of a problem
- Power of In-House Technology – Unlike other competitors in the market who either take technology from banks or outsource their technology to IT providers, we build everything in-house and can scale and solve issues in a much better, and faster way. Paytm itself is the biggest customer of the Paytm Payouts product
- Automatic Retries with Smart Transfer – Typically when the beneficiary bank technology system is down,NPCI systems are having issues or the remitter is running low on balance, transactions will fail. With our in-house technology, we understand every system and error code. Hence, we can identify error codes that can be retried and automatically retry those error codes if Smart Transfer is enabled. 90% of transactions that will otherwise fail, thus end up being successful with Smart Transfer. Read more about Smart Transfer here
- Fraud & AML Transaction Monitoring – Every transaction is monitored across 100s of parameters like the location of payment, amount, beneficiary, and receiver concentration to ensure that we can help our businesses prevent fraud
Paytm Payouts emerged as a solution to our own needs, parallely identified with our customers’. With the dynamic and ever evolving identification of numerous parameters along the way, we have made it incredibly convenient for you to access the product, and use it to your advantage, whether you’re a business owner, transactional manager or a developer.
For detailed Paytm Payouts API documentation, please click here.
For detailed Paytm Payouts User Guide, please click here.
With the massive range of the benefits we offer, you surely can’t say no. So, what are you waiting for? Sign Up and start profiting now!