Introduction to Settlement

What is Settlement


Merchant settlement refers to the process by which a business or merchant receives the funds from an aggregator / PA for all the transactions made by customers using the respective PA’s gateway. It is a crucial part of the payment processing cycle in the context of electronic payments. 

Settlement in Payment Industry


The payments and settlement industry has been evolving rapidly in recent years due to advancements in technology, changing consumer preferences, regulatory developments, and global economic shifts.


As per industry standards, settlement of all transactions with the merchants typically is done on a T+1/T+2 basis excluding the Public/banking holidays (All Sunday, 2nd and 4th Saturdays). 


Here are some key industry trends and changes in the payments and settlement landscape. 

  • Faster Merchant Settlement
  • Improved Cash Flow Management
  • Greater Financial Flexibility