Accepting money in the current Internet-savvy world has become easier for businesses. QR code scanners, POS devices, or payment gateways, there are multiple options to choose from. However, another important side of every business is to manage payments to various stakeholders involved with your business.
If you run a Small-and-Medium Business (SMB) or a startup, you might have realised the need to split payments and then transfer different amounts to multiple vendors or bank accounts.
For example, an online marketplace that brings sellers and buyers on the same platform requires splitting of payments between the sellers and platform. If the marketplace charges 2% platform fee and receives an order of Rs.100 which is to be divided equally between two sellers, then it requires the incoming payment to be split in a way that each of the sellers gets his share of Rs. 49. Managing such transactions manually is both time-consuming and prone to human errors.
With the rise of unique business models like food aggregators or marketplaces, splitting payments to manage business-related payments is a challenging problem. It requires a robust payment solution to address the needs of businesses pertaining to different industries.
What does Paytm have in store for you? – The answer is – Paytm Split Settlements.
Let’s dig deeper to learn more about the benefits of Paytm Split Settlements for your business.
About Paytm Split Settlements
With Paytm Split Settlements, you can split incoming customer payments related to the orders you receive to various stakeholders easily. You can decide the amount you want to settle with different vendors or bank accounts, based on which Paytm Split Settlements processes the payments seamlessly.
Payment problem solved exclusively by Paytm Split Settlements
While dealing with the flow of money related to your business, you might have faced challenges with the following steps involved:
- Collection of payments from different customers through multiple payment sources – credit cards, debit cards, etc.
- Deduction of service charges, commissions, or profits from the amount received
- Payment transfer to the third parties involved, including vendors, suppliers, etc.
- On-time reconciliation of all the payments received or paid
- Fulfilling compliance and audit requirements
Managing all these steps manually requires significant resources, payment infrastructure, and a lot of time. It is where Paytm Split Settlements comes into the picture. It is a comprehensive solution using which you can handle the flow of money from your account to the network of sellers, vendors, and other stakeholders involved.
What can you do with Paytm Split Settlements?
You can handle the following tasks using Paytm Split Settlements for your business:
- Easy management of all your bank accounts and vendor accounts
- Easy to split a transaction amount into multiple accounts by percentage or amount
- Real-time reconciliation using vendor settlement files
- Easy to view or download the account list having Account IDs from the dashboard
- Easy to edit the bank or contact details from the merchant dashboard
How does Paytm Split Settlements work?
To split a payment into multiple bank accounts via Paytm Split Settlements, follow the steps given below:
Add the bank accounts to the Paytm Payment Gateway
You can easily add one or more bank accounts – yours or that of vendors/suppliers using our Merchant Dashboard.
Store the account IDs of different accounts in your database
Once you add bank accounts on Paytm as a merchant, you will receive an Account ID for all the added accounts.
Pass the respective Account ID with split amount details
To split a payment received through a transaction, you need to pass the account ID of the respective bank accounts along with the details of split – amount to be settled or percentage. The amount will get settled in the linked account in the next working day (as per T+1 settlement cycle).
Click here to know the details required to add/onboard an account for Paytm Split Settlements.
Industry-wise use cases of Paytm Split Settlements
Most large-scale educational/coaching institutions look for a solution to collect fee payments online. Besides this, the total fee received comprises several components, like tuition, library, lab, or sports. For better management of funds in respective departments, the amount is to be transferred to different accounts.
However, not every payment gateway provides the option to split and manage payments to various stakeholders involved in different departments. Paytm Split Settlements can help them streamline the payment outflow related to this business.
Online marketplaces promote products sold by different individual sellers. For an order that includes products from multiple sellers, the total order value received from the customers needs to be divided amongst the sellers and settled into their account timely.
With Paytm Split Settlements, the marketplace owners can simplify the task of splitting money with the seller for each customer transaction. They can receive their revenue share in the linked bank account while the sellers receive their share timely via Paytm.
Cable and broadband industry
For customers enjoying daily TV or online surfing hours, paying the cable/broadband bills on time is necessary. While they all deal with the local operators for monthly recharges, the main service provider has to manage payments at large.
With the rise in digital payment acceptance for cable and broadband services, most consumers prefer paying online. The amount received reaches the service providers’ account directly and they need to split payments between the local operators as per a fixed percentage. This can be easily managed using Paytm Split Settlements.
Online payments received for a business franchise through the local consumers reach the main business account directly. Out of the total amounts received, the share of different franchises is to be transferred to the franchise ownersâ bank accounts. While managing the same manually takes a lot of time and effort, Paytm Split Settlements can make things easier.
Recommended Read: A Merchant’s Guide to Payment Gateway Settlements
To start using Paytm Split Settlements, sign up today!