Supported Settlement Plans

1. T+N Settlement


As soon as a Successful Transaction happens we notify the merchant and the money moves into the merchant's MPA, which gets settled at (T+N). Here, 12 AM is the cut-off timing for the day and between 12 AM to 2 AM, bill generation happens where the system computes the settlements and deducts MDR, GST, Refund/CB charges, etc. 

Our Standard Settlement cycle is T+N working days (it can get to T+1/T+2.....T+30, generally T+1), with T being the date of transaction captured and N being the day of Settlement (Subject to the agreement with the merchant), in maximum cases, its T+1 and  This implies that the Settlement for all payments collected in a calendar day (T) would be processed on T+N calendar day, where N is equal 1 for most of the T+N merchants.


Key Features:


  • Auto sweep into a merchant's bank account once a day.
  • Reconciliation of 12 AM-12 AM transactions on a regular basis.


2. Same Day (Or Early) Settlement


Same Day Settlement can provide businesses with improved financial flexibility and faster access to funds, which can be beneficial for managing working capital and addressing liquidity needs.


Impact of UPI 

Same Day Settlement has been made possible owing to UPI. UPI offers faster fund transfer capabilities when compared to traditional fund transfer methods like NEFT (National Electronic Funds Transfer) and RTGS (Real-Time Gross Settlement). Since UPI payment transfer from an acquirer to a PSP  is quite faster now compared to NEFT and RTGS, PSPs are able to make the fast transfer to their merchants. 


The specific settlement terms and timelines can vary based on agreements between the PSPs, acquirers, and merchants. 


i) On-Demand Settlement


  • Under this offering merchants can transfer money in their Bank account on a real-time basis as and when they want using the Settle Now feature on the business app. 
  • It is a subset / feature of Same-day Settlement only which allows you to take money into the linked bank at any time, with no limits on amount and counts. 
  • Upon clicking the button Settle now / Transfer to the bank, the merchant can instantly trigger a real-time transfer of any amount to his Settlement bank account instantly.

 Note: Merchants have to do this transfer manually only and Businesses can take the call of applying the Withdrawal fee


Key Features:


  • Instant money transfer to Bank.
  • Multiple Settlement transfers within the same day.
  • No upper cap on the transfer value. 
  • Transaction reports downloadable from UMP will have Settlement details embedded in them.  


How to transfer funds on demand?


Using UMP Dashboard:


  1. Log in to the Paytm Dashboard and go to the Settlements Section. You can see the Business Account balance available for transfer.
  2. Alongside this Balance available for transfer, merchants can see the Transfer to Bank button
  3. Upon clicking the button, the merchant can instantly trigger a real-time transfer of a minimum of INR 50 & maximum of any amount to his Settlement bank account.
  4. The details of these transfers (amount, bank reference no., date & time of transfer) can be downloaded from the Settlements section of the merchant dashboard as soon as the transfer is successfully processed. 


Using P4B

  1. Login to P4B App.
  2. Click on the Bank Settlement Icon (Home page).
  3. Go to Payments.



  4. Click on Settle Now.


 Note: You should have a minimum 50 Rupees balance to settle on your own.



ii) Transaction Wise Settlement 

TWS is a more advanced offering, which provides the instant/real-time settlements of each transaction accepted without any merchant intervention. 

  • Each acquiring transaction has its own settlement leg as well and transaction-level settlement UTRs are provided in real time. 
  • Transaction reports downloadable from UMP will have settlement details embedded in them. 
  • For every forward transaction accepted by the merchant, there is a settlement transfer log associated with the transaction.
    • UTR of transfer 
    • Settlement date & time 
    • Settlement Payout ID (Unique system ID for every transfer)
    • This settlement leg is initiated as soon as PG receives the sales transaction’s success status from the respective acquirer
    • This is initiated for transactions of all pay modes for a merchant (MID level config)
    • Settlement details such as the following are uniquely associated with the forward transaction
  • These transfers are initiated 24x7 irrespective of the amount.


 Note: Currently, refunds are not supported for this product but definitely are in our future scope. 


3. Custom Settlement


Some businesses have closing hours extending beyond 12 midnight (like Petrol Pumps, Bars, Restaurants, etc) and the concept of a calendar day doesn’t really apply to those businesses. Don’t worry we have the ultimate offering for you which works as per your flexibility on business hours and liquidity requirements. Not just Once or twice we can settle up to 24 times a day (in a 24-hour window) as per your need. 

This offers the ultimate flexibility to choose your desired settlement window/ hours and settlement timings (same day or T+1) against each cycle. For example, You can opt for a 3 PM-5 PM, 5 PM to 10 PM, 10 PM to 9 AM, and 9 AM to 3 PM cycle or 6 AM-6 AM cycle, meaning any x to y duration in a day. 

Each cycle will have its own settlement. You can opt for some amount on the same day ( by paying some nominal charges ) and the rest of the amount can be settled on T+1 without any additional cost as per your working capital requirements. 
Transaction and settlement reports are downloadable from UMP


 Note: Once a custom cycle is enabled, merchants can't take any other/ default (12 AM to 12 AM) cycle for the next 2 days.


4. Escrow Based Settlement


Escrow-based settlements refer to a financial arrangement in which a third party, temporarily holds the funds in an escrow account on behalf of two parties involved in a transaction. The funds are held until certain conditions or obligations are met, at which point the escrow agent releases the funds to the appropriate party. 


Escrow is commonly used in various types of transactions to provide security and ensure that both parties fulfill their commitments. 


Advantages of Escrow-based Settlement

  • Builds buyer’s trust
  • Minimizes the fraud 


Escrow-based Settlement Workflow

  • While purchasing products / services on the merchant platform, the user completes the payment transaction via preferred paymode. 
  • Post successful delivery of purchased goods / services to the user, the merchant notifies Paytm of the same via settlement trigger.
  • Paytm marks the transaction amount as eligible for settlement to the merchant
  • Paytm then releases the order amount held in the Escrow account to the merchant according to the terms & conditions of the agreement.