PayU Paisa, an online payment solution by PayU India has launched ‘Automated Payment Settlement Solution’ for marketplaces and online aggregators in India. The company claims that this will allow marketplaces to have a better control over their fund disbursement mechanisms.
According to the company statement, payment settlements that a marketplace go through typically lead them to “tiring manual reconciliation of large data” which often “leads to delays and lack of transparency between the two parties” – the sellers and the buyers. This creates serious problems for a marketplace to manage account history and run balance accounts with its sellers. Keeping that in mind, the company has launched its new product.
“With, PayU Paisa’s ‘All-In-One’ Payment settlement solution, marketplaces can reduce the operational costs by 85% and add transparency into payment settlements.” claims Nitin Gupta, co-founder and CEO, PayU Paisa.
Urban Ladder, an online retailer for furniture in India has become the first marketplace to adopt it.
Why All-In-One Settlement solution?
As per RBI’s mandate, aggregators need to maintain a nodal bank account and settle payments to sellers within T+2 days, this however increases operational cost. With All-In-One Settlement solution, PayU Paisa takes care of nodal account registration and other regulatory requirements and help marketplaces cut the cost on seller. Moreover, the PayU Paisa dashboard allows marketplaces to conveniently maintain the account history and run the balance of the sellers while adding transparency into payment settlement between sellers and marketplaces.
How it works ?
When a buyer checks-out a number of products from one marketplace, belonging to different retailers, PayU Paisa generates a single order ID against the transaction and 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. PayU Paisa’s API then handles the calculation and distribute the share to the marketplace’s bank account in T+2 days.
Similarly it calculates and reconciles the sellers’ share of transaction amount and settle the amount into their bank accounts within T+2 days while deducting the refund amount, wherever applicable. (the marketplace defines the value of ‘T’ here. ‘T’ could be the date of transaction, shipment date of order, delivery of order etc.)
PayU Paisa is backed by parent company Naspers Group, valued as a $25 billion media and internet company. The payment gateway is being used widely by schools, housing societies, art enthusiasts, SME’s and many more. Recently, it has also made tie ups with quite a few societies in Gurgaon to allow their residents pay electricity and maintenance bills in a hassle free manner.
Check out more about the platform, its features and the pricing details here.
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