- Paytm launches same-day bank settlement facility
- This facility will be available for businesses
- The feature could be accessed via Paytm Merchant Dashboard and also the Paytm for Business app
On Tuesday, Paytm has announced that it has launched the facility of same-day settlement for all kinds of fund transfers made on its payment gateway. This facility will help its business partners to settle money transfers anytime in their bank account on the same day of receiving payment, without waiting for the next day.
The new same-day settlement feature from Paytm will help businesses which depend upon immediate availability of funds to pay its down-stream partners. This includes the e-commerce companies, government institutions, and also all other businesses which involve inventories, especially those involved in day to day trading who depend heavily on cash procurements.
This facility can be accessed via the Paytm Merchant Dashboard or even through the Paytm for Business app.
In this features the minimum amount which can be transferred is set at Rs 50, while the maximum amount is Rs 2 lakhs in a single transfer request.
The merchants will be able to define frequencies and the funds will transfer automatically. Frequencies can be once a day, twice a day or even three times a day.
“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,” said the Vice President (VP) of Paytm, Saloni Malhotra.
She also said, “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.”
According to a Bangalore based consulting and research company, RedSeer Consulting, which launched a report titled “Indian Mobile Payments – 5x growth by 2025” not so long ago, wrote that the Payment gateway aggregator market in India currently stands at INR 9.5 Tn & is expected to grow by 2.4x driven by large value transactions, in the report.
The report also said that it is expected to grow at a CAGR of 19% in the coming 5 years and could reach Rs 22.6 Tn by FY 2025. Paytm, currently, is the fastest growing payment gateway; in the last 5 years, it has grown from 40 Mn transactions per month in FY 15 to 400–450 Mn transactions per month in FY 20.
Paytm leads, especially, in the new age business space and has built strong traction in enterprise business. Also, the firm has a strong presence in the retail business segment as it has acquired merchants through direct routes in addition to other aggregators.