A deep dive into instant payouts
If you need information about instant payouts, we’ve got you covered. Continue reading to discover everything you need to know about instant payouts, including:
- The definition of instant payouts
- The advantages of instant payouts
- How instant payouts work with Fondy
What are instant payouts?
Instant payouts are a business feature that helps companies manage the movement of funds when payouts have to be made to suppliers, customers, or to other merchants. Even better, the instant payouts feature usually includes an end-to-end view of the funds. That means starting from received funds (settlements) until payments are sent (payouts), you’re always one step ahead.
Basically, a payout is an action of paying out to someone. Although payouts are technically the same as common money transfers, the difference is that a payout usually is associated with a business that needs to pay a participant already in its ecosystem. For example, when a marketplace or gateway like eBay needs to pay its merchants or sellers after a sale is completed.
Whenever a customer makes a purchase from a merchant via a marketplace or gateway, the marketplace or gateway will initially receive all the funds regarding the sale. Then, the marketplace will have to pay the merchants the proceeds of said sale. This regular payment is known as a payout or sometimes a settlement.
The same is true in the gig economy. Picture a ride-sharing platform that connects drivers and passengers, i.e., two separate participants in this business ecosystem or food chain. It’s the platform’s responsibility to collect funds from every passenger and make a payout to their drivers once the journey is complete. For their service, the platform will usually take a percentage, commission, or flat rate from that payment and will payout the rest to the driver.
While most payouts typically take several days to clear, instant payouts are usually complete in around 30 minutes. Even better, instant payouts with Fondy are made easier thanks to automation.
Instant payout automation means that the platform won’t have to manually initiate a payout every time they receive money from a transaction. As automation is configured at an account level, a payout will be triggered to the driver automatically.
If you’d like to delve deeper into payouts for businesses, we recommend checking out our article, “What are payouts: a guide to instant & global payouts”.
Benefits of instant payouts
Saves time
Focus on other business activities with automated instant payouts, which allow you to adjust payouts according to your business model.
Cost-effective
Instant payout’s automated nature means that it reduces many operational processes and associated costs.
Speedy access
Merchants receive their funds in their bank accounts much faster.
Hassle-free
Instant payouts allow you to pay your partners on cards or accounts in local currencies using a single API.
Multiple payouts
Instant payouts also reduce the costs of triggering transfers manually by automating multiple payment flows where necessary.
Instant payouts with Fondy
Instant payouts are a feature of a Fondy Flow and the Fondy Gateway account. The Flow account can be linked to supported bank accounts, to which you can then make instant payouts. Within the Fondy Gateway (separate from a Fondy Flow account), you can link a supported bank card to which you can make instant payouts.
With Fondy’s payout system, you can make instant payouts to partners locally in 35 countriesOnly Fondy Gateway currently using a single API. Simply set up automatic payouts from pre-selected wallets and accounts, whether yours, a partner, or a supplier’s account.
You can request instant payouts any time, including weekends and public holidays, and funds typically appear in the associated bank account within minutes.
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