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As most businesses ranging from eCommerce to online gaming, rental businesses, and corporates, enter the internet, they seek a robust payment infrastructure to support large-scale transactions.
Businesses have to make bulk outgoing payments on a regular basis to pay their customers, employees, vendors and suppliers. Businesses have been integrating with banks for bulk payouts for a long time.
However, traditional banking solutions have tedious and time-taking processes. They may also have transaction failures and there is a lot of complexity around the reconciliation of refunds.
Unsurprisingly, they look for systems that work even during non-banking hours without delay and interruptions.
Cashfree’s Payouts is an end-to-end solution for such businesses where they can make bulk disbursals.
But, how can businesses be assured that Cashfree Payments’s Connected Payout APIs are a smarter alternative than direct integration with banks?
Hence, here we bring a detailed analysis of how Payouts draw several benefits over direct bank integration to help businesses scale up.
Direct Integration with Banks – Problems faced by Business Merchants
For integrating with banks, you usually have to pay a physical visit to the bank. It also requires filling up forms and a lot of offline processes.
Once done, it does not end here, you have to do manual uploading of excel sheets in a predefined format for making disbursals. This makes it prone to errors and time-consuming.
Moreover, bank servers can process a certain number of transactions per second (TPS). Hence, all transactions over the set limit will automatically fail.
You can make bulk transfers only to a beneficiary bank account and the banks take around 24 hours to approve the beneficiaries. There are no instant modes of transfer and fund transfers can be only through RTGS, NEFT, demand draft or cheque outsourcing.
Bulk transfers can be made only to a beneficiary bank account. It includes fund transfers (that is within the Bank’s Branch Network), RTGS, NEFT, and DD/ Cheque outsourcing.
So, businesses were looking forward to resolving all these disbursal problems and Cashfree’s Payouts cracked the code.
Why Payouts by Cashfree Payments?
Unlike the tiresome process of integrating with corporate banks, integrating with Cashfree Payments is much easier and time-saving. Cashfree’s Payouts has 100% online onboarding with a paperless KYC where you can make the first transaction almost immediately.
All modes of payments are available where you can make instant payments, even on bank holidays. There is instant activation of beneficiaries without any cooling period. You can easily add up to 10,000 beneficiaries in a click.
Here’s a comparative table of corporate banking solutions vs Cashfree Payments’s Connected Payouts-
Benefits of Cashfree’s Connected Payouts APIs
Cashfree Payments’s Connected Payouts APIs provide a wide array of payment modes along with the best turnaround time (TAT) as well as high transaction rates. Businesses can track the payment status in real time. Additionally, Cashfree’s Payouts gives you several benefits-
1. One Integration to Rule Them All
There is no need to do multiple integrations for multiple banks. Integrate ONLY ONCE with Cashfree Payments to get connected to ALL our banks – Yes, ICICI, Kotak, IndusInd, Axis & RBL!
Smart routing among multiple banks guarantees higher uptime & success rate for bulk disbursals.
Additionally, Cashfree’s Connected Payouts is developer-friendly and easy to integrate API. You can go live within minutes with easy-to-integrate REST APIs.
2. Saves up to 360 Man-Hours
Within three weeks, Cashfree Payments can complete integration projects for you. A direct bank integration, however, would cost you three months!
You can easily Sign Up on Cashfree Payments and initiate their Payouts Account Activation through the merchant dashboard.
Once it is activated, link your bank account(s) with your Payouts Account and add your beneficiaries using our Dashboard or APIs. Cashfree’s Payouts allows you to instantly validate the account details.
You can start making bulk payouts to your beneficiaries through any payment mode and get notified by email or via webhooks. You can automate reconciliation and also use your merchant dashboard to view detailed reports.
3. Huge Cost-Saver
We have a lower one-time integration fee than banks. With Cashfree Payments, all your subsequent integrations are FREE, whereas direct bank integrations will cost you a fee.
Choose us for near-zero maintenance!
4. Be Future-Ready
Your one-time integration with Cashfree’s Payouts will work for all our future banks – SCB, HDFC, etc. Switch banks easily with just a parameter change.
5. Automated Reconciliation
Cashfree Payments ensures near 100% reconciliation in 5 minutes. Be it transfers, failures, reversals or reconciliations, you can automate reconciliation across multiple transfer modes, destination banks and reporting formats.
6. Efficient Fund Management
Cashfree routes and splits the transfers between multiple banks. Therefore, we ensure a higher success rate by avoiding insufficient funds or in events of downtimes.
There is no dependency on one bank and even if the server of a bank is down, transfers will be automated through the other banks. You can add beneficiaries and do up to 10,000 bulk payouts in one go with a simple excel file upload.
7. Support that’s Hassle-Free
Businesses would rather spend time bringing new customers than worrying about payouts and reconciliations in case of failures. With Payouts, you can focus on running your business while we take care of all your API contract changes at the bank.
‘Payouts’ ensures that you stay informed about your business finances and hence, you can generate custom reports. You can gain insights about transfers, reversed transfers, statements, etc.
8. Industry’s First Bank Downtime Detector
With our real-time bank downtime tracker, we will let you keep track of any and every unscheduled/scheduled bank downtime to help you plan your bulk transfers better. We believe in transparency and so, will help you take care of all beneficiary bank downtimes.
Moreover, Payouts allow you to track the transfer status in real-time and know the exact reason for failure.
9. We Help You Manage the Bank’s TPS Expectations
A merchant’s TPS depends on which bank you integrate with for connected banking and direct payouts. As we connect the business merchants to multiple banks, hence, you are not dependent on one bank for disbursals.
You can send instant vendor payments, employee wages, partner commissions, and other such payouts.
10. Trust and Security
Cashfree’s Payouts do fraud detection along with multiple security checks in place at API and dashboard levels to help reduce risky transactions. Transfers to incorrect account details fail instantly. For certain banks, it may take up to 24 hours to receive a confirmation of failure.
To ensure that account details are correct, you can activate Cashfree Bank Account Verification and verify the beneficiary account validity and beneficiary name at the bank.
Summing it up:
These are just some of the reasons why Cashfree Payments leads the market with over 50% market share in the Payouts industry. In fact, it processes 1,000 payouts every second and surged over 200% in FY 2021 as compared to FY 2020.
Sounds interesting?
Contact our payouts experts today to discuss your disbursal needs!
