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Businesses do bulk outward payments like vendor payouts, partner commissions, employee wages etc, on a regular basis. Moreover, they need:
- Money transfer systems
- Backup sources of funds in case of unforeseen exigencies in the events of downtime or insufficient funds.
Basically, they want an ecosystem that works along with them, for them.
We, at Cashfree Payments, lead the Payouts market In India with over a 50% market share. Naturally, we often encounter customer stories where the Payouts tech needs to evolve with the business needs.
Payouts Challenges Merchants Were Facing
In fact, recently, we came across certain Payouts challenges that businesses were facing.
- Delay in Onboarding: There is a huge dependency on the support team for adding fund sources. There is no way to add fund sources via the Payouts Dashboard. Thus, the availability of limited self-serving options makes onboarding very time-consuming.
- Limited Fund Sources: Merchants are dependent on banks. Only one type of fund source is allowed in one payout account. Therefore, there’s a high chance of payment failure or delay.
- Recharges to Digital Wallets are Supported ONLY via Bank Transfers: Business merchants can recharge their digital wallets only from bank accounts via IMPS or NEFT. Hence, businesses are unable to diversify and use Corporate Credit Cards for making payouts.
- Lack of Cash Flow Visibility: Limited or zero visibility of account details of fund sources that are connected to a payout account.
- Unable to Manage Transfers Between Multiple Fund Sources: Unable to define the load of transaction count between different fund sources. If and when there is an emergency, routine transfers can be difficult.
With these challenges in hindsight, we knew that we needed to fill the existing gap in the Payouts market.
So, this is exactly the reason why we are introducing our latest Payouts update: Fund Sources. Through fund sources, you will be able to make payouts through various payment methods like a bank account, virtual account, digital wallet or corporate credit card.
What is a Fund Source?
A fund source is an account through which you can make payouts. With Cashfree Payments, you can add and manage multiple Fund Sources to your payouts account including :
- Bank Accounts
- Cashfree wallet [Virtual Account]
- Digital [Paytm] Wallet
- Corporate Credit Card [Coming Soon]
Moreover, you can:
- Add funds
- Select the preferred fund source for every payout transaction
- Check Balance
- Track transfer status in real time
… and much more!
Here’s something even more interesting.
You can automate the process by letting us know the percentage of traffic split for each fund source transfer. We will smartly route the transfers via each fund source, thus, saving you time and increasing efficiency!
How Fund Sources by Cashfree Payments Update the Revolutionizing Payouts?
As with most of our product updates, this one was released as an answer to the growing business needs of our customers. As a customer and tech-first PSP, our aim was to ship fast and perfectly faster.
Let’s have a look at the Fund Sources USPs and how it fares compared to the industry peers.
| Capability | Contemporary Payout Way | Improved Payouts Fund Sources Way |
| Fund Sources Type | Can’t use different types of fund sources in the same Payout account | Add and manage multiple fund sources to your payouts account. |
| Merchant Friendly Dashboard | Can’t add Fund Source from dashboards. Dependency on the support team leads to delays in onboarding. | Self-serve. Connect your bank accounts, Paytm wallet, and corporate credit card to Cashfree Payments via the dashboard. |
| PSP Wallet | PSP wallet cannot be recharged through different payment methods | Recharge your Cashfree wallet with any payment method |
| Fund Sources details visibility | Unable to see the account details of fund sources that are connected to the payout account | Check fund sources’ account details and define the load of payouts between different fund sources |
| Routing Transactions | No payment routing facility | Route the transfer via a pre-specified fund source while making each payout |
Fund Sources Type Provided by Cashfree Payments
With the ‘Fund Sources’ release, you can plug and manage multiple Fund Sources with just a few clicks from the dashboard!
Let’s look at each fund source, its competitive advantage, and benefits:
1) Connected Bank Account
You can now connect your bank accounts to the payout account in Cashfree for making payouts. Unlike other market options, Cashfree Payments allows you to make payouts directly to beneficiaries’ bank accounts. With Cashfree’s dashboard, you can now easily connect your bank accounts and make payouts instantly on your own, without any further manual-support intervention. Additionally, you can switch between different connected bank accounts to avoid any unforeseen exigencies of bank downtimes & reduce dependency on a single bank as a payout source.
2) Cashfree Wallet
When you activate your Payouts account, a dedicated Cashfree Payments’s account is created for you. You can add funds to your virtual account and manage payouts. Also, you can also check the available balances in real-time. You can now easily send money to any bank account, UPI, & digital wallet [Amazon]. To add to it, easily set a low balance alert via email. Therefore, you get a notification if your balance drops below the threshold limit, and avoid any payment failures.
3) Digital Paytm Wallet
It is recommended to use this fund source for sending money to other Paytm wallets. You can complete KYC for your business Paytm wallet(s), and connect your Paytm wallet to Cashfree Payments via an easy-to-use dashboard in just a few clicks with minimal effort. Then, you can add funds and make instant payouts to the beneficiary Paytm wallets. Additionally, it is possible to define a percentage transfer split among multiple Paytm wallets or other funds sources and ensure a higher success rate by avoiding unforeseen exigencies such as insufficient funds or downtimes.
4) Corporate Credit Card
Unlock flexible working capital with Cashfree Payments! Connect your Corporate Credit Card(s), via a user-friendly merchant dashboard, and make direct bank transfers. No separate bank account or virtual recharge account is needed to make payouts. So, automate transfers, avoid bank downtimes, and enjoy a high success rate!
Get Started With Fund Sources Today!
With Cashfree Payments’ multiple fund sources, define and control the money transfer between different fund sources, and route the transactions efficiently. Also, you will be able to automate the fund source for each payout while making payouts. With this feature, we hope to make payouts easier for you. Interested in trying this feature? Get started today!
