Payment Automation for Businesses – Introduction
Every day, businesses of various capacities have to carry out a significant number of monetary transactions. In addition to these payments, there are many credit and debit transactions like vendor payouts, employee salaries, client dues, and more that firms have to execute from time to time. Such payments repeat at a particular frequency, and businesses need an easy payment method to carry them out.
eMandate is a fast and easy payment procedure through which firms can drive automation through their recurring payment transactions. By implementing digital payment mechanisms, businesses can streamline their large-volume repeating monetary transactions online.
The method offers a reliable process for businesses to make/receive payments at regular intervals.
Digital Payment Trends in 2022
The digital payment industry is booming, and businesses are adopting it like never before. The total value of digital payment transactions is projected to reach 8.50 tn US dollars in 2022, out of which 142.50 bn dollars is the estimated value in India alone.
The substantial value denotes how much digital payment processes have taken over the reins, providing a fast, dependable, and efficient way for businesses to manage their monetary transactions.
AI (Artificial Intelligence) and ML (Machine Learning) platforms reduce fraud while making payments. Businesses can use these technologies to scale up speed and security across all their payment transactions. AI is a game-changer, especially in the RegTech sector, as it can bring about innovative payment assisting technologies like chatbots, voice-activated payments, etc.
A digital wallet is another electronic payment mechanism that offers convenient contactless payments one can make even on the go. The wallet stores the data related to the payments in a secure and compact form and eliminates the need for a physical bank account or wallet.
Another easy payment method is card tokenization which replaces the basic details of a card with a token that will be specific only to one merchant at a time. The method offers a high level of security as the scope for fraud and misuse is significantly reduced.
Biometric authentication offers a unique way of enhancing safety in digital payments. It uses facial recognition, iris recognition, fingerprint scanning, and many such methods to add a layer of security when electronic payments are carried out.
Advantages of a Digital Payments Infrastructure
Increased innovation in the digital payment ecosystem makes it easier for businesses across different industries to adopt a cashless economy.
- Enhanced Customer Convenience: Electronic payments are faster than traditional payment methods like cash and cheques. Clients can experience ease while paying businesses as they do not have to stand in long lines every time a monetary transaction has to be made.
- Increased Profitability: Through digital payments, businesses can increase their profitability by making their recurring payments more convenient with reduced costs. Financial transactions with clients, suppliers, and the government become quick and efficient for businesses when they set up automatic payments.
- Reduced Costs: Using a digital payment system helps businesses steer clear of high processing and fund transfer charges. An electronic payment system prevents businesses from incurring high processing charges as they only have to pay a fixed subscription to their payment gateway service providers.
- Contactless Repeating Payments: Digital payment methods offer convenience and safety to employees as it eliminates the need for them to handle money or contact several people physically.
- Automated Salaries: Firms can automate their employees’ salaries so that the process is set up and keeps repeating every month. This improves work efficiency while also ensuring employees receive their wages on time. Automated periodic payments can reduce the cost and time of paying employees, making digital payment methods essential for businesses.
- Safe and Instant Payments: Traditional payment methods consume a lot of time and cannot be carried out instantly. With electronic payments, transferring money periodically becomes fast and secure. Users can quickly initiate payments through their desktop, laptop, or mobile device.
- Transaction Transparency: With digital transactions, there is complete transparency regarding every detail of a payment made, including the place, time, date, etc. This feature reduces confusion every time a business makes a recurring payment.
Automating Recurring Payments With eMandate
eMandate is a fast, safe, and convenient way for users to automate the process of making recurring payments. Businesses can set up an eMandate process to make bill payments, transfer employee salaries, accept client payments, payout vendors, collect fees, and receive EMIs with ease.
Banks, non-banking financial institutions, insurance providers, entertainment service providers, educational institutions, and any other business that encounters the need for repeating easy payments to be processed can set up the eNACH mandate mechanism.
The electronic mandate mechanism can be easily integrated into the business to activate periodic payments instantly. The online payment method serves as a boon for organizations as they can rely on it to receive/transfer money on time at the required frequency.
How To Set Up eNACH eMandates For Your Business?
Setting up recurring payments is easy, thanks to eMandate eNACH providers like SignDesk, who offer payment automation software tailored to business needs. Organizations can seamlessly integrate the eMandate mechanism into their recurring payment process flow so as to expect timely payments with ease.
1. eMandate Registration:
- The consumer must submit a request using an eMandate form to initiate the eMandate registration procedure.
- The business sends the payer, who may be a client or customer, an authorization request. This process can be done through institutional eMandate portals that can be easily set up through digital eMandate software providers like SignDesk.
- The customer validates the request by supplying his debit card information or net banking credentials.
- The received information is provided to the sponsor bank, the financial establishment that offers the digital platform for the eMandate to occur.
- The sponsor bank forwards the electronic mandate details to the National Automated Clearing House (NACH).
- The eMandate requests are sent out by the NPCI to the destination bank that holds the customer’s account, which accepts or rejects the request based on whether the requirements are satisfied.
- Following that, the issuing bank shares the response to the NPCI, which updates the sponsor bank on the response status.
- SignDesk receives the response to the eMandate request and triggers the electronic mandate.
2. eMandate Fund Transfer:
- Following receipt of the response, SignDesk initiates the fund transfer for the eMandate.
- The amount authorized for the eMandate is deducted from the customer’s destination bank account.
- The payment is then transferred to the sponsor bank through NPCI.
- The sponsor bank transfers the funds to SignDesk’s nodal account.
- Next, the funds are transferred to the account of the business that requested the eMandate.
Conclusion
The future of monetary transactions is digital. Electronic payments are easy to implement and scalable across the different kinds of payments a business makes. Whether small-scale or large-sized, every business needs to adopt a digital approach to carry out easy payment transactions that are quick, efficient, and hassle-free.
With simple and secure eMandate automation platforms like link.it by SignDesk, firms can expedite their recurring payment transactions, cut down costs, and ensure every payment happens on time.