Streamlining Payments with Real-Time Settlement

Streamlining Payments with Real-Time Settlement

On 30 May 2023

In the fast-paced world of business, time is money. Businesses that receive cards and online payments through payment gateways need quick settlement of funds to their bank accounts to have more flexibility to manage their money.

Failure to credit merchants' accounts on time significantly impacts their cash flow. However, the solution to this problem is now available in the form of real-time settlements. By settling transactions in real-time, businesses can say goodbye to the frustration of waiting for payments to clear and, instead, have the money credited to their bank accounts faster than ever before.  

What is real-time settlement?  

Real-time settlement refers to the instantaneous transfer of funds from the merchant’s Pesapal's account to their bank account or mobile wallet. This payment processing method allows for the immediate receipt of payments, eliminating delays and providing quick access to the funds.  

With real-time settlement, merchants don’t have to wait for long periods  to receive their funds, making it a faster and more efficient payment method. It can be used for various types of payments, including online purchases, mobile payments, and point-of-sale transactions. 

How does real-time settlement work 

In the past, traditional banks were the primary players in the settlement process, but the rise of e-commerce and mobile payments has led to new players in the payment industry, including e-wallets and non-banking institutions. To support this trend, payment gateways, and infrastructure providers are developing new solutions allowing real-time settlement between these different institutions.  

Pesapal, through our e-wallet solution Openfloat, now enables real-time settlement for merchants in Kenya. Openfloat is an e-wallet that allows businesses to withdraw funds from their Pesapal account to their mobile wallet. With the real-time settlement, merchants using Openfloat can receive their funds instantly instead of waiting for a traditional settlement period, which can take several days. This allows businesses to access their funds faster and helps improve their cash flow management. In addition to the real-time settlement, Openfloat also provides businesses with various other features and benefits, including the ability to view their transaction history and track their cash flow in real time.  

Benefits of real-time settlement 

Real-time settlement offers several benefits for merchants, including faster access to funds, improved cash flow management, and better customer experience. 

Faster access to funds: Real-time settlement allows merchants to receive funds almost instantly. This can be particularly beneficial for businesses that rely on a steady cash flow to maintain operations or manage their finances. 

Improved cash flow management: With the real-time settlement, merchants can manage their cash flow more effectively. They can use the funds received to pay bills, purchase inventory, and invest in their business without having to wait for days or weeks for the funds to clear. 

Better customer experience: Real-time settlement enables businesses to serve their customers better. This enables them to provide efficient and timely service to their customers, such as faster order processing, quicker issue resolution, and improved overall responsiveness. Real-time settlement empowers businesses to optimize their operations, resulting in enhanced customer satisfaction and a more positive customer experience.

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Published In: Payments
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