Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    What's Hot

    PhonePe raises growth funds at a $12 billion valuation, led by General Atlantic

    January 23, 2023

    360 ONE acquires Mumbai Angels; announces two new funds with them

    January 23, 2023

    Kotak General Insurance partners with Clootrack to enhance customer centricity

    January 23, 2023
    Facebook Twitter Instagram
    BFSINXT
    Twitter YouTube LinkedIn
    • Banking
      • SME /Wholesale Banking
      • Retail
      • HR
        • Wholesale
      • Rural & Agri
    • NBFC
      • Customer Experience
      • Retail
      • Digital
    • Insurance
      • Life
      • General
      • InsurTech
    • Fintech
      • Payments
      • Lending
      • Wealth/PF
      • Neo-Banking
    • Policy
      • RBI
      • IRDAI
      • SEBI
      • Government
    • Financial Services
      • Securities
      • AMC
    • About us
      • Editorial Team
      • Our Advisory Panel
      • Get In Touch
    BFSINXT
    Home » BLOG: How has technology made payments and collection easy for businesses
    Fintech

    BLOG: How has technology made payments and collection easy for businesses

    Whether there is a street vendor or a first- time entrepreneur or an old business needing revamp or a multi- national company, there is a customised solution for everybody. Fintech is the real hero here, and here to stay for a long time, making lives easier, every day.
    May 23, 20224 Mins ReadBy editor
    Twitter LinkedIn WhatsApp

    We are finally living in the digital age, where education, banking, healthcare, shopping, and even meeting people is happening virtually. Covid times made sure that we did not step out of the home, yet all the needed services were available right at our doorstep. Unified Payments Interfaces (UPI) apps and Payment Gateways made sure that our transactions were safe and secure, plus cashback offers that have flooded the market ensured that people understood the advantages of epayments, as more than just a way to receive salary, but to make payments too. It has influenced major realms of human life from the largest to the smallest of financial transactions delivering convenience. The epayment technology has made our payment process fast, smooth and fraud resistant. Here are a few more reasons why they are growing every year.

    Speed

    Every corner shop owner today will point to the QR codes of more than one company when asked if he accepts online payment. He is running short of time as he needs to deliver quick snacks to satiate the hunger of the customers. There is no time to waste in collecting payments and giving back the change, because honestly who has the time? Smart work leads to increased revenues at top speed.

    Efficiency

    Large corporates receive thousands or sometimes even millions of payments each month. It would be maddening to try and keep an account. They struggle to match the payment received with the invoice they generated. Part-payment against invoice complicates this even further. Today banks and fintech enable direct interface with the corporates. They deliver additional information along with the payments message such as the PO number and invoice number. The corporate ERP can use this information to automatically match the payment against the corresponding invoice and reconcile instantly.

    Cash Flow

    Predictability of inflows influences the cash flow position of a corporate significantly. Cheque and cash-based payments or payer-initiated payments result in uncertainty of receivables. Recurring auto-debit payments almost eliminate this uncertainty. When the payer authenticates a recurring auto-debit payment, the receiver can instruct the bank to collect the fund automatically on the due date. In India ACH and UPI have greatly simplified processes to achieve recurring auto-debit. Businesses can now plan their cash flows with a lot more confidence.

    Extended Credit

    All credit facilities to business involve analysis of the track record of the business. Small businesses dealt predominantly in cash until recently. The lenders had no means of analyzing the quantum of business and hence the ability of the business to repay the credit. Today, thanks to UPI and instant payment facilities, most of the transactions of all small business happens entirely through electronic payment. So the bank statement of the small business gives a pretty accurate picture of the business. Lenders can finally lend to small and micro-businesses with a great degree of confidence.

    Customer Retention

    EMI payments for high-value consumables are nothing new. However, in recent times, thanks to COVID, consumers prefer to retain cash for a longer period. This has lead to a new business models such as Buy Now Pay Later, whereby the customer gets a fixed credit facility upfront to shop in a specific shop or a chain. The BNPL facility is made possible by the advanced payments infrastructure available today. BNPL offers customer retention capability to the business.

    Convenience

    Fintech companies today offer end-to-end business finance solutions covering accounting packages, day-to-day banking facilities, automated supplier payments, bulk payments (such as salary pay-outs), a corporate card with the ability to manage, segregate and pay for cards transactions, salary account services, and credit facilities. Corporates can now find a single operator for all their financial management needs. This gives a quick start to start-ups and young companies. Large organizations can work with such fintech to tailor their requirements as well. The payment gateway apps have infiltrated the lives of the common man. They receive as well as make payments through them. Whether there is a street vendor or a first- time entrepreneur or an old business needing revamp or a multi- national company, there is a customised solution for everybody. Fintech is the real hero here, and here to stay for a long time, making lives easier, every day.

    The blog has been authored by Balaji Jagannathan, Co-Founder and Director, Paycorp.io. Bfsinxt.com Bfsinxt.com does not necessarily endorse it and will not be held liable for any direct or indirect damage made to any individual or organisation.

    Blog Payments Small Businesses
    Previous ArticleRBI issues guidelines on inter-operable card-less cash withdrawals at ATMs
    Next Article AU Bank extends its AU Royale programme to salaried and business segments
    editor

    Related Posts

    PhonePe raises growth funds at a $12 billion valuation, led by General Atlantic

    January 23, 2023

    Jupiter raises Rs 100 crore in venture debt financing from Alteria Capital

    January 7, 2023

    Drivio raises $1 million in seed funding

    December 25, 2022

    PayMate Receives In-Principle Authorization To Operate As A Payment Aggregator From RBI

    December 10, 2022

    Leave A Reply Cancel Reply

    Recent Posts

    • PhonePe raises growth funds at a $12 billion valuation, led by General Atlantic
    • 360 ONE acquires Mumbai Angels; announces two new funds with them
    • Kotak General Insurance partners with Clootrack to enhance customer centricity
    • Upstox partners with ‘Trading View’ to empower traders with simplicity
    • AU Small Finance Bank introduces menstrual leaves for women employees

    Recent Comments

    No comments to show.
    Demo
    NBFC's

    PLANET App by L&T Financial Services Crosses 1.5 Million Downloads

    January 7, 2023

    SIDBI enters Co-lending Space for Unsecured Loans to MSMEs, partners with Ambit Finvest

    December 31, 2022

    Piramal Finance launches ‘Innovation Lab’ in Bengaluru

    December 19, 2022

    Shriram Transport Finance and Shriram City Union Finance are now Shriram Finance, India’s largest retail finance NBFC

    December 5, 2022
    New Policy
    Policy

    GSTN gets included as a Financial Information Provider under Account Aggregator Framework

    November 23, 20220By Bfsinxt Desk

    The RBI said, with a view to facilitate cash flow-based lending to MSMEs, it has been decided to include Goods and Services Tax Network (GSTN) as a Financial Information Provider (FIP) under the Account Aggregator (AA) framework.

    RBI to run Nation-wide Finanical Services Awareness Programme in November 2022

    November 3, 2022

    RBI to soon operationalise CBDC Wholesale (e₹-W) Pilot

    November 1, 2022

    RBI launches दक्ष (DAKSH) – Reserve Bank’s Advanced Supervisory Monitoring System

    October 8, 2022
    • Twitter
    • YouTube

    Subscribe to Updates

    Get the latest creative news from SmartMag about art & design.

    BFSINXT
    Twitter YouTube LinkedIn
    © 2023 bfsinxt.com.

    Type above and press Enter to search. Press Esc to cancel.