10 advantages to using a mass payment platform for payouts
For successful digital enterprises, marketplaces, and financial institutions, rapid global growth can bring challenges as well as profits. It can be difficult to manage disbursements for all your sellers, pay suppliers and sub-contractors, and keep up with global compliance, especially when it involves cross-border payments.
That’s why many companies are turning to mass payments platforms for help streamlining the payment process. These use new payment technology to ease the burden of payment distribution for bulk payments.
Here are 10 top advantages to using a mass payout solution for your bulk payments.
1. Save time on tedious payment processing
By automating the payment process, mass payment software cuts the time you spend on batch payments. This can save hours onboarding new payees, completing tax forms, authorizing individual payments, and other time-consuming manual payment processing tasks. Instead, companies can invest that time in growing the business, expanding into new markets, and adding more revenue streams.
2. Remove friction and hassle
It can be a serious headache to work with banks to send and receive payments every month . You find yourself filling in the same forms and answering the same questions again and again. But mass payment platforms offer an alternative to banks.
A payment API makes it easy to introduce payment automation for batch payments. Automating payment processing can ease the burden of verifying payment details, managing payment integration to your ERP, payment tracking and reconciliation, and more, boosting efficiency and lowering stress.
3. Ensure compliance with finance regulations
Managing mass international payments means complying with global regulations around Know Your Customer (KYC) processes, anti-money laundering (AML) laws, financial crime detection and prevention requirements, and more. It’s tough for any organization to keep up with ever-changing rules.
But when you use a trustworthy mass payout solution, you receive state-of-the-art risk-based compliance that takes over responsibility for KYC processes, risk and fraud detection and prevention, and even tax laws, so you can sleep easy at night.
4. Improve business relationships
A mass payout solution can enhance business relationships in a number of ways. It improves the payee experience for freelancers, suppliers, and other partners by helping ensure that electronic payments arrive on time, and through the recipient’s preferred payment options.
Mass payout solutions also cut the burden of compliance for marketplace partners, making it faster and easier for them to onboard their own customers. And increased payment security helps protect your payment network, showing that you value their security as well as your own.
5. Reduce the risk of errors
It’s easy for mistakes to creep in when you process mass payments manually. Just a second of distraction can result in the bank rejecting your payment, which could make you miss a payment deadline. What’s worse is that manual errors could send money to the wrong person. Even small mistakes suck up time and raise your stress levels.
But payment automation helps avoid all these missteps. Information is copied accurately every time, reconciliation is automated, and payments arrive at the right place at the right time every month, bringing more accuracy to your payment processing.
6. Improve your bookkeeping abilities
The work that goes into mass payments stretches beyond simply authorizing the payment. You also need to track payments, handle payment reconciliation, and other accounting tasks.
A mass payments platform offers tools like real-time payment tracking, a dashboard that displays payment history, reliable reporting about payment transactions, payment status, and recipient information, and more. This streamlines bookkeeping and increases efficiency and productivity.
7. Scale your business without limits
When you can manage global payouts in any currency, send and receive payments between any country, and connect with recipients and partners anywhere in the world, you are free to grow your digital enterprise without restrictions and connect to a wider range of marketplaces.
A good mass payment solution supports you to work with people across different countries and regions, regardless of currency or payment methods. Ideally, you’ll also be able to draw on globally local support networks that provide 24/7 customer support in multiple languages and through multiple channels.
8. Raise the bar for payment security
Whether you run an ecommerce platform for entrepreneurs to sell products online, manage freelancer payments for international clients, pay business partners, own a digital brand, or manage your own payments app, it’s vital to have a secure payment gateway.
A bulk payments system can bring stronger and more robust security features than you could build alone. These include protocols like advanced encryption to prevent fraud, keep hackers away, and protect everyone’s sensitive information.
9. Cut the costs for your business
Many banks charge a fee if your e-check bounces or if your payment is rejected because you made a mistake on the form. Payment methods like wire transfers can come with hefty fees, and if you miss a payment deadline, you could have to pay a fine or interest.
Automating the payment process with payment software helps prevent all of that. You can usually save on fees when you pay online and take advantage of better exchange rates and lower fees for currency conversion. Automated payments also ensure you never miss a deadline. Some platforms have no minimum balance and free registration, making it even less costly to adopt mass payment technology.
10. Bring in more flexibility
Last but not least, a good mass payouts solution gives you more flexibility for cross-border payments. Look for one that supports plenty of payment methods like credit card payments, ACH bank debit, local bank transfers, and wire transfers, and that makes it easy to set up account details in multiple currencies. Some even offer payment cards, like Payoneer’s prepaid card.
A payments platform also gives you the ability to manage currencies for all your payments. When you can send, receive, and hold funds in various currencies, you’re better placed to respond to partners and payees anywhere in the world.
11. The advantage of using a mass payment solution can be greater than you realize
Electronic payments don’t have to be a headache. When you use a mass payouts solution, you can save costs, time, and hassle, strengthen compliance, security, and business relationships, and reduce the risk of errors. Ultimately, the right mass payments platform can enable your marketplace, platform, or digital enterprise to scale swiftly and smoothly.