Payment gateway service provider Paytm on Tuesday launched a same-day settlement facility for all kinds of fund transfers on its payment gateway to help businesses that depend upon immediate availability of funds to pay down-stream partners.
This includes e-commerce companies, government institutions and all businesses involving inventories, especially those involved in day-to-day trading who depend heavily on cash procurements.
The feature can be accessed from Paytm merchant dashboard or Paytm for business app. The minimum amount that can be transferred is Rs 50, and the maximum amount is Rs 2 lakhs in a single transfer request.
The merchants can define frequencies and the funds will transfer automatically. Frequencies can be once a day, twice a day or even three times a day.
“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 Paytm’s Vice President Saloni Malhotra.
“We will soon introduce merchant-facing application programming interfaces for triggering on-demand settlements and checking outstanding payable amounts,” she said in a statement.
According to Bengaluru-based RedSeer Consulting, which recently launched the report titled ‘Indian Mobile Payments — 5x growth by 2025,’ the payment gateway aggregator market in India currently stands at Rs 9.5 lakh crore and is expected to grow by 2.4x driven by large value transactions.
It is expected to grow at a CAGR of 19 per cent in the next five years to reach Rs 22.6 lakh crore by FY 25.
Paytm has grown from 4 crore transactions per month in FY15 to 45 crore transactions per month in FY20. It leads especially in the new-age business space and has built strong traction in enterprise business.
Besides, it has a strong presence in the retail business segment by acquiring merchants through direct routes and via other aggregators.