What is instant settlement - 3 benefits that instant settlement service brings to businesses

During the payment process between domestic or cross-border businesses, sometimes the transaction will take a certain time to reach the recipient (a typical example of traditional** remittance transfers to Vietnam from the US, UK, France, Germany, Australia, Japan, Taiwan, India**, etc.).

The process of receiving money usually lasts from 1-2 days, sometimes more than a week, which is quite a long time and can affect some business processes of the whole company.

Therefore, instant settlement services were formed. Today, let's join FinFan to learn more about instant settlement and the benefits it brings to businesses.

What is instant settlement?

As mentioned, instant settlement is an intermediary service that helps promote payments between parties (usually cross-border) to take place almost instantaneously.

Is instant settlement a payment gateway?

To know whether an instant settlement is a payment gateway, we need to know about payment gateway.

Read more: Payment gateway and its usage.

Normal payment gateway

As in the article about payment gateway, FinFan has a clear definition of this service. It is an intermediary service that helps support connections between e-commerce platforms or websites, stores, restaurants, etc., and bank payment methods such as credit cards, debit cards, and e-wallets, etc.

Although this form has brought a lot of convenience to domestic payment transactions, it is still very inconvenient for cross-border payment issues when it is difficult for online shop owners to manage cash flow for the store's expenses selling on international platforms.

Weaknesses of the payment gateway (cashfree payment) model

The biggest problem with payment gateway models is that the payment receipt time can be extended up to 2 days for cross-border payments.

Sometimes, the time it takes to actually receive those funds can stretch out due to weekends and holidays. In certain circumstances, like a transaction happening the day before a weekend followed by a holiday, it could take as many as five days to complete settlement.

That kind of delay can leave merchants waiting a relatively long time to receive customer payments. Depending on the needs of your business, that wait could disrupt your cash flow and lead to a variety of negative consequences.

Instant settlement payment gateway

The above problems have been solved with the instant settlement payment gateway solution. Also possessing the features of a regular payment gateway, instant settlement is capable of supporting online shops and business companies affiliated with local banks or some other different payment methods such as e-wallet, gift card, etc. to pay amounts related to cross-border transactions.

On the other hand, the instant settlement also addresses outstanding problems that other forms of payment gateways have not been able to, which are the long time for transactions to be processed and the difficulty in managing transactions.

3 benefits that instant settlement payment gateway brings to businesses.

So, we know the concept of instant settlement payment gateway as well as its features. Next, let's continue to learn with FinFan about 3 benefits that it brings to businesses.

Real-time payment

As answered above, we have learned that instant settlement is a type of payment gateway that has been upgraded to better suit the needs of e-commerce business owners to receive money directly and quickly as well as other cross-border payment issues.

Easily manage income and expenditure

We are all aware that money and goods are the two most significant aspects of a corporation, and financial administration and control are very complex.

As a result, firm financial managers usually want a solution for making payments swiftly and declaring immediately in order to avoid omissions and carelessness in delaying financial reporting.

Easier to manage customers.

Because payments take place in real-time, business owners can easily review the financial software system that has integrated API with the company providing instant settlement services for them and learn more. customer consumption and purchasing behavior.

From here, the company will have more data for marketing campaigns tailored to the needs of customers who have been using its products and services.

Conclusion about instant settlement payment gateway

There are still some remaining difficulties when setting up an instant settlement payment gateway system for businesses:

• Integration with existing payment technology will be more complex.

• The convenience of receiving funds instantaneously can come with a higher cost, represented by increased service fees.

• It may be more difficult for a business to qualify and be approved for an instant settlement gateway.

However, instant settlement payment gateway is still a technological advancement in payments and needs to be strongly developed in the future because it brings a lot of convenience to businesses. Do you already know you want to incorporate an instant settlement payment gateway into your card payment workflow? Or do you want to optimize your overall approach to accepting card payments? FinFan is here to help.

About FinFan

FinFan is a cross-border embedded financial services company that focuses on mass disbursement, fund collection, card processing, IBAN, and digital APMs solutions, which can provide valuable input and integration on and for the same.

FinFan is already integrated with almost the world's well-known MTOs, PSPs, switch, and core fintech platforms such as Money Gram, Thunes, Qiwi, Remitly, World Remit, Bancore, PaySend, Terrapay, Ria Money Transfer (Euronet), Dlocal, Ripple, TripleA, FoMo Pay, Wings, etc.

For more information, please get in touch with us through:

🌐https://finfan.io

📞(+84) 2866 85 3317

✉ support@finfan.vn

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