Gig economy merchants mainly disburse through bank accounts and require payout methods that allow for paying suppliers instantly.
A good payout solution should allow gig economy businesses to disburse money locally and, ideally, should also come with cross-border payments functionality.
The real-time nature of payouts is another important goal that merchants can achieve through automation. An API-based payout solution (such as that offered by PayU) helps to automate the internal payout process, so businesses can pay without operational burden, delivering a great customer experience.
Businesses in the crypto space typically use ACH bank transfers for local disbursement and SWIFT or wire transfers for anything cross-border. Therefore, an inability to process payouts instantly creates an immediate risk due to exchange rate fluctuation and high operational volumes. Lack of automation with banks can lead to higher costs as well.
A crypto exchange needs a 24/7, real-time payouts solution to pay investors faster and avoid exchange risk.
This is again where an API helps a lot by automating the payout process and reducing the operational burden for the merchant.
In a marketplace business, a payouts solution helps merchants scale in different countries and be cost-efficient by paying local-to-local and cross-border-to-local faster.
Merchants need detailed payout information to split the payment between the marketplace and the seller. They usually aim to pay sellers in real-time with well-known payout methods in the local currency.
A modern API payout solution is again useful when it comes to helping marketplaces easily scale their operations in different markets. This should allow them to issue payouts locally in different countries and currencies without any integration burden.
Multi-level marketing (MLM)
MLM merchants often disburse funds locally through bank portals. Traditionally, this comes with an operational burden and takes more time for the third party to receive the payout.
Merchants in the MLM space could therefore also benefit from a real-time payout solution – as well as a more efficient and automated process to pay dealers faster and ease their operational burden.
Refunds for retailers and payment providers
E-commerce merchants offering alternative payment methods (APMs) and card payments to their customers need to refund money easily. But the process from most card issuers is often slow and delivers a poor experience to payers. Furthermore, when paying through some alternative payment methods (APMs), a refund option is not possible.
To solve this issue, retailers and payment providers need a real-time payout solution that enables refunds and also allows merchants to process payouts in new markets easily.