Digital payments major Paytm has started same-day settlement facility for all kinds of fund transfers on its payment gateway, the company said in a press note today.
The same-day settlement feature will help businesses that depend upon immediate availability of funds for their business. This includes e-commerce companies, government institutions, and all businesses involving inventories.
As a norm digital payments made to a merchant is usually not settled on the same day. Industry standard is that settlement happens after one day or two days, depending on the specific day of the week. However, payment startups have been innovating on same day settlements to encourage small merchants who need cash in their bank account daily to start accepting digital payments.
From Rs 50 up to Rs 2 lakh, everything can be settled daily to even three times every day depending on the requirement of the merchant.
“The launch of same-day settlement facility is in line with our aim of strengthening the Digital India mission by making high-frequency and high-value business transactions completely cash-less,” said Saloni Malhotra, Vice President – Paytm.
The feature will benefit merchants stocking up for the festive season.
In the last five years, Paytm Payment Gateway has grown from 40 million transactions per month in FY 15 to 400–450 million transactions per month in FY 20.
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