To Ease Business Transactions, Paytm Introduces 'Same-Day Settlement'
India’s leading payment gateway Paytm has announced the launch of the same-day settlement facility for all kinds of fund transfers on its payment gateway. Paytm has introduced this feature to aid the business partners to proceed with money transfers at any time in their bank account on the same day of receiving payments. This speeds up the business activity that gets delayed due to late payments as they need not wait for a day to transfer money after receiving it.
Paytm’s new same-day settlement feature has been launched to help the businesses to rely on the instant availability of funds to pay the downstream partners. Alongside, this feature is also available for e-commerce companies, government institutions, and all businesses that involve inventories, particularly those involved in the day to day trading that requires a heavy cash procurements.
Saloni Malhotra, Vice President - Paytm states, “The launch of same-day settlement facility is in line with our aim of strengthening the Digital India mission by making high-frequency & high-value business transactions completely cash-less. This facility will strengthen businesses that are dependent on daily cash requirements. The feature is especially useful in this post lockdown period when businesses are getting ready for the upcoming festive season. Every single day reduced from their working capital cycle is a big relief for them."
She further adds, “We will continue to launch innovative features that make digital transactions more convenient & efficient for our merchant partners compared to cash transactions. We will soon introduce merchant-facing APIs for triggering on-demand settlements and checking outstanding payable amounts."
The new same-day money transfer feature could be accessed from Paytm Merchant Dashboard or Paytm for Business app. The feature permits the money transfer ranging from 50 to 2 lakh in a single transfer request. The merchants could define frequencies and the funds would get transferred automatically. Additionally, the frequencies could be two to three times a day.
According to the Bangalore based consulting and research firm, RedSeer Consulting’s report ‘Indian Mobile Payments- 5x growth by 2025’, currently the country’s Payment gateway aggregator market in India is at 9.5 trillion and it is expected to escalate by 2.4 times driven by the large value transactions. Furthermore, the market is also expected to grow at a CAGR of 19 percent in the next five years and would reach 22.6 trillion by FY25. Paytm being the fastest growing payment gateway has witnessed a growth from 40 million transactions per month in FY15 to 400–450 million transactions per month in FY 20 in the last five years. The company leads in the new age business space and has built strong traction in enterprise business. Moreover, the company’s strong presence in the retail business segment by procuring merchants through direct routes and through other aggregators.