In order to reduce the payment settlement headaches of marketplaces and online aggregators in the country, PayUPaisa has announced the launch of its new offering – ‘All-in-One’ payment settlement solution. This solution addresses all the problems related to money settlement and help marketplaces achieve higher efficiency by providing better control over fund disbursements mechanisms.
A marketplace or an aggregator sells to buyers from its website and in turn settle money to thousands of sellers for every transaction that happens on its website. However, the payment settlement happens through standard sources of payments like- cash, cheques, NEFT transfers etc. This typically leads to tiring manual reconciliation of large data, tedious dispensing of accurate individual payments to sellers which often leads to delays and there is lack of transparency between both the parties. This creates serious problems for a marketplace when it comes to maintaining account history and running balance for a seller. These issues not only shoot up a company’s expenses on allocating more resources for payment settlement but also make it extremely difficult for a marketplace to have a proper control over fund disbursements to sellers.
Understanding Marketplaces and Aggregators who would benefit from PayUPaisa:-
(A) Any Marketplace which involves sellers and buyers. For instance Tradus, Snapdeal and ebay.
(B) Any Aggregator who cumulates different items and services for selling or payment collection purposes. For example :-
I. Aggregators who are collecting fees for schools/colleges/ Institutes from their website.
II. Aggregators who collecting maintenance fees for housing societies like Commonfloor.com
III. Aggregators who are selling hotel room inventory from their website like Goibibo Hotels.
Why Use PayUPaisa’s All-In-One Settlement Solution:-
1. Seller On boarding: As per RBI’s mandate, aggregators need to maintain a nodal bank account and settle payments to sellers within T+2 days. There’s a significant operational cost attached to do this. PayUPaisa takes care of nodal account registration and other regulatory requirements for the sellers. This way, marketplaces can cut huge cost on seller on boarding.
2. Variety of Controls given to a Marketplace/Aggregator: A marketplace player gets a powerful PayUPaisa dashboard wherein it can set conditions for the sellers who are using its platform to sell. It can decide terms like marketplace commission, fees, Gift Voucher values etc. with the sellers at an aggregate level or per transaction level. The dashboard allows convenient maintenance of account history and running balance of the sellers. This adds more transparency into payment settlement between sellers and marketplaces.
3. Reconciliation by Marketplace/Aggregator: PayUPaisa’s solution will process payments and settlements for various types of payment methods like:-
· Prepaid: Credit Card/ Debit Card and Net banking
· Cash on Delivery
· Gift Vouchers and Discount Coupons
4. Faster Settlements and easy Refunds:
(A) All settlements are automatically done in T+2 days through PayUPaisa’s settlement APIs. ‘T’ can be defined by the marketplace or automatically triggered using an API as well. ‘T’ could be the date of transaction, shipment date of order, delivery of order etc. This eventually benefits a seller who gets paid very quickly.
(B) A marketplace can settle and refund money at sub order ID level. A single transaction done by a buyer can have products purchased from different sellers. While the payment and recompilation will happen at the order level for the marketplace, settlements and refunds for the sellers will happen at the sub order ID level.
How does PayUPaisa’s All-In-One Settlement Solution Works:-
A Buyer decides to buy various products offered by different sellers operating in a marketplace. He adds all the products to his shopping cart and proceeds to checkout. The buyer makes successful transaction on the payments page. A single order ID is generated for the buyer against this transaction and PayUPaisa reconciles the payments for the marketplace at this single order ID level. However, the settlements and refunds done to individual sellers happen on sub order ID level. (Each seller gets a sub order ID)In order to settle money into the marketplace and seller bank accounts, PayUPaisa APIs spring into action here! The marketplace’s share of transaction i.e. the marketplace commission is segregated by PayUPaisa and is transferred to marketplace’s bank account in T+2 days. (T is defined by the marketplace at the start of the process). On the other hand, PayUPaisa calculates and reconciles the sellers’ share of transaction amount. It also deducts the refund amount for the sellers, who’re eligible for a refund. The final amount is then settled into seller bank accounts within T+2 days. Again, the marketplace defines the value of ‘T’ here. ‘T’ could be the date of transaction, shipment date of order, delivery of order etc.
PayU India’s Co-founder & CEO, Nitin Gupta explains “Marketplaces and aggregators spend huge money on putting settlement and reconciliation systems in place and are yet unable to achieve efficiency and transparency. The reason being that while such players are expert in providing platforms for online selling and buying, it calls for a payment expert to solve issues related to payment processing, settlement and refunds. We at PayU become a perfect fit here and hence rolled out an automated settlement and reconciliation solution considering the pain points of marketplaces. This solution has already been implemented by Urban Ladder, India’s leading furniture marketplace and we’re confident that it will be more in demand post its official launch. With, PayUPaisa’s ‘All-In-One’ Payment settlement solution,marketplaces can reduce the operational costs by 85% and add transparency into payment settlements.”
“We have recently associated with PayUPaisa to help process all customer and seller related transactions. With this association we hope to be worry free about these transactions and are confident that it will result in faster and accurate settlements. This can be a game changer in most marketplace models and will help build confidence amongst customers and sellers”. Ashish Goel, CEO & Co-founder, Urban Ladder