Payout Modes Explained

blog13

If you’re a business owner in India who has recently started implementing digital payouts in your business, you should understand the types of transfers. When it comes to payout options in India different acronyms are important to know- NEFT, IMPS, RTGS, UPI & Paytm Wallet.

Paytm Payouts has all the payout modes with RTGS as the latest offering. It enables 24*7 payouts 365 days with multiple modes of payments.

Types of payout instruments

NEFT (National Electronic Funds Transfer)

With NEFT, you can transfer any amount to the recipient’s account. NEFT transactions don’t have a maximum limit for funds that can be transferred in a single day. NEFT processes the funds in batches of 30 mins and the transaction can take time depending on the batch it gets processed in. While NEFT is now 24/7, however, some banks have put limits on the amount that can be transferred. However, Paytm Payouts allows you to transfer any amount of funds When should you use NEFT?

  • Transfers are not instant

IMPS (Immediate Payment Service)

IMPS is another real-time payment service, but the distinguishing factor is that IMPS is available 24⁄7 and you can avail the service even on bank holidays. Using IMPS, you can transfer comparatively lower amounts, up to Rs. 2 lakhs, instantly. IMPS is great to use for immediate transfers that you can do at any time. It is instant and works seamlessly throughout the year. However, this is typically used for smaller transactions as there is a limit of Rs. 2 Lakh per transaction. When should you use IMPS?

  • Smaller transactions (<2 Lakhs)

RTGS (Real Time Gross Settlement)

RTGS transfers happen in real-time and the settlement is not done in batches but on a one by one basis. RTGS provides instant transfers, however, this can only be done during banking hours. RTGS supports larger transactions and has a minimum transfer value of Rs. 2 Lakh. There is no limit on the size of transactions in RTGS. When should you use RTGS?

  • No limit on transactions

UPI (Unified Payments Interface)

UPI is a payment system launched by National Payments Corporation of India. Using UPI, one can pay directly transfer to UPI handles without the need of lengthy account number or IFSC details. UPI allows for instant transfers to the end-user and is for smaller transactions with limits of 1 Lakh per day for a single beneficiary. When should you use UPI?

  • UPI handles make it easier for customers to share

Paytm Wallet

Paytm wallet allows transfers simply based on mobile number. No account details needed, simply transfer. Paytm wallet allows instant transfers and can be used anywhere. This can be used for smaller transfers with an overall limit of 1 Lakh. When should you use Paytm Wallet?

  • Only phone numbers needed

blog13-1

Paytm Payouts – the one-stop solution

Paytm Payouts allows you to do all the above transactions through the dashboard or APIs. Make your payouts powerful & seamless. Ensure all your business payments from vendor payments, employee salaries, incentives, channel partners, etc.

Still confused on which mode to choose, Paytm Payouts now has smart routing which chooses the transfer mode automatically to ensure timely payouts. Start using Paytm Payouts today. Click here

You May Also Like
6
Read More

Our Corporate Solutions: Paytm Cash

Paytm Cash is created for your benefit so that you can easily store your digital money and pay your customers in various forms like cashback, bonus, loyalty point.