Over the last couple of years, digital payments have become the preferred mode of transaction for businesses to make monthly payouts to employees and vendors.
Considering the fact that digital payments are instant, which makes bookkeeping transparent and receivables easier to track, vendors also look forward to getting paid via online transactions.
However, it’s not easy to find a safe payments system that can securely process hundreds of payouts on a daily basis.
Time to switch to digital payouts
In this digital era, maintaining physical ledgers to track payouts is not recommended. It’s almost an act of self-sabotage. You can grow your business by just making one simple switch to digital payouts.
The good news is that you don’t have to make a lot of heavy lifting to make the switch. Paytm for Business has done that on your behalf with Paytm Payouts.
Problems digital payouts can solve:
- Quick payments: Since payouts are made digitally, there will be no delays that usually happen when you pay via a cheque, RTGS, or NEFT payment method
- No possibility of errors: With digital payouts, you don’t have to worry about manual errors that always creep in while writing a cheque or clearing invoices sent by vendors
- One-click tracking: Tracking payments is quite tedious and error-prone when you have to rely on manual entries done in the ledger book. Digital payouts automate the whole tracking process
- Pre-schedule payouts: Digital payouts allow you to schedule your payouts in advance so you never have to worry about forgetting to make payments
Types of payout instruments
Paytm Payouts is made keeping in mind the needs of all types of businesses, as well as employees and vendors. Paytm Payouts supports all payment instruments right from one dashboard.
Let’s understand in brief what these different payout methods are and when to use which one.
NEFT (National Electronic Funds Transfer)
One can transfer any amount of money using the NEFT payment mode. Although NEFT payments don’t have any upper limit for fund transfer, a few banks have imposed their own limitations.
However, Paytm Payouts allows you to transfer any amount of funds using NEFT.
While using this payment rail, you must keep in mind that it processes funds in batches of 30 minutes and the transaction can take time depending on the batch. The Reserve Bank of India made NEFT more robust in 2019 by making it available 24×7 with no bank holidays to hinder payouts.
Characteristics of NEFT
- Transfers are not instant
- No limit on transactions
- Less transaction fee
IMPS (Immediate Payment Service)
IMPS is a real-time payment service, which is available 24×7 and you can avail this service even on bank holidays. RBI recently raised the daily limit of transfers on IMPS to Rs 5 lakh.
Characteristics of IMPS
- Smaller transactions (till Rs 5 lakhs)
- Instant transfers
- 24×7 available
RTGS (Real Time Gross Settlement)
RTGS payments happen in real-time and the settlement is not done in batches but on a one-by-one basis. The one caveat in using RTGS payments is that the payment is processed only during banking hours. The benefit of using RTGS is that it supports larger transactions than IMPS and has a minimum transfer value of Rs. 2 lakh. There is no cap on the upper limit of transactions in RTGS.
Characteristics of RTGS
- No limit on transactions
- Instant settlement
- Works only during bank hours
UPI (Unified Payments Interface)
UPI is one of the most convenient payment rails launched by the National Payments Corporation of India. UPI allows one to instantly transfer money without having to enter a lengthy account number or IFSC details. One only needs the UPI handle of the payee to transfer the money. It’s largely used for instant transfers of smaller amounts with the limit of Rs 1 lakh per day for a single beneficiary.
Characteristics of UPI:
- UPI handles make payments easier
- Instant transfers
- Easy day-to-day transactions
Paytm Wallet
Online payments can’t get simpler than Paytm Wallet. It allows the transfer of money from one account to another via just a mobile number registered to the Paytm account. No other account details are needed. Paytm wallet allows instant transfers and can be used anywhere. Just like UPI, this can be used for smaller transactions with an overall limit of Rs 1 lakh.
Characteristics of Paytm Wallet
- Only phone numbers needed
- Instant transfers
- Available on public and bank holidays
Why every business needs Paytm Payouts
Paytm Payouts is the most convenient and efficient way to streamline your recurring payouts to employees and vendors. It will not only make your life as a merchant easier but it’s also designed to benefit your employees as well.
These are the few top features of Paytm Payouts:
- All payouts from one dashboard: Like all other products from the kitty of Paytm for Business, Paytm Payouts swears by the diversity it can handle. Businesses have to make a variety of payouts such as salaries, vendor payments, utility payments, rewards and refunds to customers. Paytm Payouts has looked into all these use cases and custom-designed features around them.
- Multiple payout options: Right from netbanking, RTGS and NEFT, to UPI and Paytm wallet, Paytm Payouts can do it all. Businesses just need to choose the payout method from the dashboard and get things started.
- Automated payouts: Making different payouts to multiple vendors and thousands of employees can drain you out. Since these payouts are more or less the same every month, we allow businesses to automate these repetitive payouts. All the payouts can be automated via our APIs that can be easily integrated with your existing ERP systems.
- Single-window reconciliation: You can use our dashboard to track all the payouts and get live updates. Reconciling all the payouts for the month from a single window is a huge benefit. It ensures you track all the payouts without getting burnt out of tracking payout status from different sources. Additionally, since the dashboard records all the payouts as well as receivables, it’s capable of providing deep business analytics.
- Bulk payouts: Paytm Payouts has simplified digital payouts with payment links. You can generate payout links from the Paytm Payouts dashboard and share them with vendors via email, WhatsApp, or SMS. Payout links are more useful when it comes to sending bulk payouts. It’s extremely convenient to automate bulk payouts using our robust API to generate multiple payout links in one go.
Paytm Payouts is the one-stop solution
With such a powerful one-stop solution for payouts, you don’t need to spend time or allocate manpower to handle monthly payments. Paytm Payouts will increase your businesses’ productivity as you won’t be wasting your time on non-core business problems.
It’s super easy to register for Paytm Payouts, just click on this link to start using it now.
