Mass payouts in the digital age
Payouts involve transmitting funds from a payor (e.g., your business) to a recipient (e.g., a vendor).
We’re sure you already know that these transfers have historically faced many barriers, including high fees, downtime issues, and lengthy transaction times.
For mass payouts, these issues can prove incredibly challenging.
For instance, if you’re planning to send multiple mass payouts, you could find that the total fees involved make processing transfers prohibitively expensive.
Slow transaction time constitutes another challenge that has been faced for long by the senders of mass payouts.
Given the rapid pace of today’s information-fueled economy, encountering delays in processing payments can impede your ability to make the most of your business opportunities.
With Paytm Payouts, we have constantly endeavored to solve these problems with our robust automated solutions.
Keeping the above challenges in mind, we tried asking our existing customers for selective feedback on our payouts product to understand their current experience and solve as many problems as we can. Let’s see what they said.
Why we conducted this survey
The objective of our survey was to:
- Illustrate how a cross-functional payouts system is created. With such a system, we wanted to discover which customers are prospects for growth and which require immediate intervention. Simply put, we wanted to recognize our consumers’ current experience.
- Find the primary reason a prospect should buy from us, determine what features of our product people like, and whether they would like to explore more than what we are currently offering them, get feedback from existing customers, understand what they do not like, traditionally viewed as “backup lights” indicating where we have been, which we can use as “headlights,” illuminating the path to where to go.
- Concede to what our existing consumers feel we should build next.
Along with this, it was important for us to first understand that market validation is the process of determining whether our product is of interest to a given target market.
So while we evaluated market segments and developed what we want to build next, market validation was significant to ensure we were heading in the right direction.
Thus, by simply engaging with real people and asking the right questions, we tried to confirm if our idea solved a problem, who our potential buyers were, and ultimately whether or not there was a market for our product.
We did that by calling prospects & existing clients for new verticals while we only called existing clients specifically for any product improvements that we could begin to make.
An overall perspective of what we asked you
With a net promoter score(NPS) of 80, the survey gave us a deep insight of what is working for our customers and helped us create a roadmap for our next set of actions.
We discovered that 66% of our consumers use bank transfers, 50% use wallet transfers, 23% use our sub wallet services and 13% use bill payments. About 70% are using our fast and secure APIs.
46% users who participated in the survey were owners of the company, 18% were from finance/purchase teams, 15% belonged to the business teams, and 10% belonged to the HR Teams.
These insights gave us a good sense of our consumer persona, and our feature wishlist reflected the needs highlighted by company CEOs thoroughly.
We also made our customers fill a detailed questionnaire on what is working well and what is not. In addition, we tried to check the pulse around communication and our user guide/release emailers.
Our insights told us that our marketing techniques, like our user guides and emailers, receive great appreciation and add tremendous value. At the same time, our consumers do keep an eye on our blogs which are now getting a tech twist too. You can check out one of our user guides here to get a better idea.
Top things that you rated well
Money transfer experience (especially with bulk files)
Many people worldwide have started turning to online money transfer providers. They have done this by replacing their bank or money transfer agent locations. And they’re praising these services for many reasons, most notably for their convenience and the lower costs they offer.
According to a recent survey, the comparison data shows that online providers are, on average, 4 to 8 times cheaper than international bank transfers or transactions paid in cash.
Paytm Payouts has been rated the most straightforward, fastest online way for businesses to send money outwards, especially in bulk.
With Payouts, our customers have experienced the ease of sending money to any bank account, UPI address, or Paytm Wallet via an API or by uploading a simple file.
The Payouts platform replaces a corporate banking platform with added features like adding multiple disbursal accounts for streamlined fund flow and budget management and customizable approval workflows to set user roles and fund limits that make it easier for businesses to process bulk payments timely and accurately
Digital food wallet
Every working Indian is eligible for a Rs 50/meal tax-free food allowance. However, amidst easily spoilable meal cards, low acceptability, and expiry dates, 60 lakh Indians struggle to file their food voucher claims every year.
Paytm decided to launch the first-of-its-kind Food Wallet to make life simpler for these Indians and solve this very problem. Being a part of the Paytm app, the food credit is digital and eliminates the risks of loss and expiry.
Our customers’ employees have already redeemed the Paytm Food Wallet at office cafeterias and a wide range of online and physical merchants. The list includes KFC, Burger King, Swiggy, Zomato, Pizza Hut, Big Bazaar, etc. In addition to the ease and convenience, employees have also enjoyed added benefits like exclusive deals, discounts, and cashback.
Employers have instantly been able to transfer money to the employee food wallets based anywhere in the country without any hassles of procuring, handling, and distributing bulky coupons and cards, which has turned into sure shot success.
Sub-accounts for separate budgeting & easy reconciliation
Account reconciliation is a critical component of the period-end close and reporting cycle-a frequent bottleneck and a vital indicator of a company’s financial integrity.
When done right, an organization and its stakeholders can rely on their reported numbers and management’s ability to manage them. Otherwise, account reconciliation can be a source of time-consuming manual effort for finance teams and a severe hit to the confidence of stakeholders, auditors, and regulators.
Our proprietary wallet technology has enabled us to provide the main Payouts account and the power to create unlimited sub-accounts or as we call it – disbursal accounts as per our corporate customer’s business needs.
These disbursal accounts have helped our client’s businesses to channelize funds and administer the limits for every business expense. This way, we have made it easier for them to allocate and monitor the budget for operations like bill payments, vendor payments, customer payments, etc., and to monitor the budget for every store location, office location, or their business sub-entities. The businesses can also restrict user permissions for these disbursal accounts as per their assigned roles.
You automatically create a Paytm Payouts business account when the Payouts Dashboard is signed in. This account has an associated account number and an IFSC code. This account is the primary account through which funds can be disbursed to multiple disbursal accounts, moved between disbursal accounts, transferred directly to the vendors, or used for the bill payments.
This has proved to be a great win among our customers who have been significantly eased out because of the standard of our product.
Solving multiple payable use cases in one product (e.g., utility payments, tax benefits, corporate expenses)
The manual and archaic payout systems become the deepest pain of the modern complex businesses and directly affect their growth curve.
We at Paytm anticipate that these problems will only increase as the businesses grow and operations become more complex. Hence, Paytm for Business has developed an in-house Payouts Product to provide a one-stop solution to all your payout issues.
With this survey, it has clearly come out as a robust corporate payouts solution with in house expertise to manage and automate all your business approval processes, track and manage all office/shop utility bills, track and pay vendor payments, validate vendor bank account details, make bulk payouts and make payment reconciliation smoother than ever.
What you had to say about us
By the way, we have these awesome features too. Check them out
Validation Services (Sync API & Panel both available)
With each failed payment costing businesses a lot to repair, processing payments seamlessly is a priority for corporate companies and financial institutions alike.
At Paytm Payouts, we are in the business of ensuring that single payments and bulk payments are going through every time, at the right time to suppliers, payroll, and any other recipients, avoiding costly late and failed payments.
Many payments fail because the beneficiary data is either invalid or out of date. With such important data going out of date each year, it is not surprising that incorrect account details are occasionally provided to the institution for processing the payment.
Payment validation is a complete end-to-end capability to validate any single payment or any single payment file.
Designed to help corporate and financial institutions to quickly validate digital bank payments, our validation APIs automatically do a thorough data check. This check is done to verify the account details of recipients, essentially confirming that the given bank account is accepting credits,and if the given bank account belongs to the same customer or not.
With validation service support for bank accounts, UPI VPA and Paytm wallet, we enable you and your customers to submit the correct bank payment details; saving time and money and dramatically improving straight-through processing. Thus, we reduce the hassle of failed bank payments, manage rule compliance, and fix any damaged customer relationships too.
It’s standard practice for organizations of all shapes and sizes to utilize various financial methods, to manage cash and keep operations running smoothly. One of the most important of these is reconciliation, which can be extremely useful for managing day-to-day finances and cash management.
The purpose of this is to make sure that any payments that were expected to be completed (and which you’ll have an internal ledger record for) have actually been paid.
Reconciliation helps organizations spot discrepancies, so they can identify where the ledger and statement fail to match. This error shows where they need to investigate any payments which anyone could have made erroneously or fraudulently.
Our Passbook API provides the transactional level details and the closing balance per each transaction you make. You can thus use this API for all your reconciliation needs.
Reason for pending transfers
Paytm Payouts has the advantage of working with thousands of subscription businesses from a wide range of industries. This gives us access to hundreds of millions of data points that encompass billions of attributes from many different types of companies.
We draw upon this data and our years of subscription experience to intelligently retry declined transactions with our ‘Smart Transfers’ feature. By doing this, we help you increase overall revenue from payment success, reduce customer interruptions in access to your product or service and decrease involuntary subscriber churn.
Every declined transaction is different, which makes a static, one-size-fits-all retry schedule less effective. For customers on Paytm Payouts, Smart Transfer and queueing time period up to a maximum of 72 hours can be enabled by just a single click from Paytm Payouts Dashboard.
The payouts can be queued for different time periods for each of the three types of money transfers:
- Bank Transfer
- Wallet Transfer
- Payout Links
The Smart Transfer feature intelligently queues failures and retries payments till they are successful. This reduces your effort to initiate the payment multiple times, also ensuring that the beneficiary gets paid on time.
For any transaction (UPI, NEFT, RTGS or IMPS), there can be scenarios where the transactions were initially successful but are later reversed/credited back by the beneficiary bank.
In such cases, businesses will have informed customers and vendors that they have successfully transferred the amount based on initial status only to later find that these are reversed.
Hence, businesses need to monitor reversals on a daily basis so that their customers and vendors can be informed timely.
Paytm Payout’s reversal webhook is generated after successfully reversing funds in the business’s payouts account.
Our webhook will trigger a callback for the following cases –
- Fresh Reversal – Your callback will be triggered only when the refund for this case will be successful as the beneficiary bank rejected the original transaction
- Credit Adjustment – The webhook will trigger your callback when the refund for this case will be successful due to the beneficiary bank giving real-time success on the original transaction but later reversing the transaction to the remitter bank because it didn’t credit the beneficiary account
- Wrong Credit – Your callback will be triggered only when a refund for this case will be successful
- Penalty Credit – The webhook will trigger your callback in case of both success and failure of Penalty Credit Order to the Wallet
- RTGS & NEFT – Paytm Payouts helps your businesses transfer any amount to any beneficiary on any date and time instantly!
In 2020, it became essential to boost the digital payments culture in India. RBI, therefore, allowed the round-the-clock transfer of funds using RTGS or Real-Time Gross Settlement.
Previously, RTGS was available on all working days of the bank, generally up until 6 pm (time varied from bank to bank). Paytm Payouts however, provides the RTGS service, 24X7.
With this, your business no longer has to plan days to make payouts. You get to access 24X7 RTGS with Paytm and make payouts to your customers, vendors, partners, or employees using a single dashboard at any time of the day.
RTGS transfers follow gross settlement, i.e., individual transaction settlement and not in batches like NEFT. This process is what makes this mode popular among businesses.
NEFT and IMPS are already available round-the-clock but are generally used by individuals as they do not have any minimum transfer limit. IMPS also has an upper cap of Rs.2 Lakh per day on money transfers, while NEFT and RTGS do not have any such cap.
With RTGS, Paytm Payouts allows you to choose from various payment modes that suit every requirement of your business.
Summarizing it all…
The comparison data we collected indeed shows that our customers are, on average, enjoying between 5 to 6 times cheaper transactional payout rates than if they were paying out their dues through other modes.
This figure is a compelling reason to start using payouts, but we understand that the switch is still intimidating for many.
But why is it intimidating? Some fear a complicated sign-up process, precise forms, or hidden fees. Many are reluctant to trust a new – and sometimes unknown – brand with their money.
We launched this study to discover how easy or complicated sending money through our platform really is and highlight the features currently offering the best user experience.
Our dataset revealed many interesting insights, all highlighted throughout this report which is the first-ever comprehensive user-experience benchmark study of the industry.
We were thrilled to recognize that our customers are not only delighted but chose independently to recommend our product to their near and dear ones, which is of prime importance to us.
For those of you worried about a complicated sign up process, it’s a single click long. Paytm Payouts has also helped most of the organizations partnered with it, to optimize their time and effort and has been rated highly responsive and effective.
As far as a hidden fee is concerned, transparency is imperative to us too and so we reveal our customized pricing details to you, on the basis of your enterprise, on the very first call we are going to have with you.
At Paytm, we also continue to strive for better and more satisfying features to make your life continuously easier. So we highly recommend you to stay tuned for more if you’re already a customer!
Are you impressed with the above figures? What are you waiting for? Sign up to Paytm Payouts now and start thriving!