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How to automate Payouts with the help of Artificial Intelligence!


Today is an attempt to bring an innovative idea which can significantly improve the payments business process through the use of Artificial Intelligence in the fintech space.

Ashneer Grover once said, I earned trust of my merchants at Bharatpe when I ensured that payouts went to the merchants at the end of every day for 365 days.

Payments/payouts is all about trust. Can you trust somebody with your money for them to deliver timely?

What are the problems in solving this trust with the payments?

  • Fast – Payment should be made fast once its due.
  • Reliable - Correct Amount to Correct Beneficiary
  • Secure – Without any hiccups of any kind

    Hatio Payouts is one such fintech company which is trying to solve all the three problems in Payouts space. Hatio Payouts is a fully owned subsidiary of Indiaideas.com Limited (Billdesk) which is India’s largest payment processor in India.

Hatio Payouts is their integrated Application Programming Solution (API) solution for businesses to safely send, automate and manage their payment disbursals (Payouts).

But hey wait – WHAT ARE PAYOUTS?

There is not a single day that any company can imagine without payments. Payments to employees, vendors, suppliers etc – all of this are payouts. They are entrenched in the day to day lives of every corporate. For a corporate, Money is similar to what blood is for any human body!

Any corporate has a tie up with their banks. The normal process for making a payment is that they shall send an NEFT or RTGS instructions in bulk either through Paper Mode or Netbanking or through Host-to-Host Payments (Company’s ERP connected with Bank).

There are two issues with this method of using a bank as a partner.

a) Time Lag: It causes a time lag since there can be multiple departments involved eg. Indenting department, Finance department, and ultimately banks.

     Vendors like to work with those entities who make their payments fastest.

b) Manual Efforts – The costliest thing for an organization is when a function which can be automated is being performed by their skilled staff eg. When somebody has already approved that Rs. 100 has to be paid to X Limited, than is there a need for somebody to actually make this payment if that can actually be automated?

Real life examples the Payouts solution.

Just imagine, how does an E-Commerce company send money for every individual return order transaction once they are received at their warehouse or sometimes at the time of their pick up itself.

What happens behind the scenes?

  • The rider updates in their app that the return order has been picked up.
  • The rider than send the product to the warehouse whereby the warehouse owner updates that the return product is received.
  • Customer Receives the refund.
  • The product will in turn be sent to the seller
  • Ultimately the payment in the seller’s account shall be deducted.

These are all milestones which are being updated in the company’s ERP.

Hatio Payouts integrates seamlessly with the company’s ERP at an Application Programming Interface (API) level (plug and play model).

Therefore, once the order status is updated as picked up by rider/received at warehouse, the refund transaction is initiated at an individual transaction level.

Practical use case of Payouts Solutions for a normal company?

So, let’s take an example of a normal business transaction and their respective milestones.

  • Procurement of goods/services is done
  • Bills is Received and found correct
  • Payment initiated to bank through NEFT/RTGS
  • Payment Done

It can be slightly different for different corporates, but the last two steps shall always remain the same.

In this case, the first two steps are inevitable. However, if there is a system whereby once the invoice is checked and found correct, the payments gets initiated automatically and also the payment is made instantaneously, then it can reduce the time lag for making payments and can also spare some valuable resources in terms of skilled manpower.

What are the different types of Payouts that are the best Use Cases?

Basically anything which is a payment can be managed.

  • Vendor Payments
  • Customer Cashbacks/Refunds
  • Sales Incentives
  • Employee Salaries
  • Loyalty Programmes
  • Insurance Settlements

Which industries can use this systems?

Any industries which deals with good number of payments regularly can use this payouts system. It does not depend on the size of the business at all.

Some of the examples of industries which are already harnessing the power of payouts solutions are as follows:

  • E-commerce companies
  • Ride-hailing & Delivery services
  • Retail companies
  • FMCG companies
  • Insurance companies
  • Healthcare companies

How Much time does it take to make the system go live?

You can try Hatio Payouts and go live in literally 30 minutes.

All you need to do is try out the Hatio Payouts API which literally takes 5 minutes and complete the KYC requirements, and you are up and running.

If some company does not have an API integration, they can also start with Excel based payments as well.

How Does it Work?

  • Add funds in Your Hatio Virtual Accounts.
  • Add beneficiary (Account Number & IFSC Code, UPI ID or even Paytm Wallet)
  • Initiate Payouts
  • Hassle Free Reports

What are the broad benefits of Hatio Payouts?

  • Quick Payouts
  • Saving Crucial Time and Manpower
  • Beneficiary Management
  • Automate Repeat Payments
  • Gets Insightful Reports
  • Hassle-free Reconciliation
  • Bulk Payouts
  • 24/7 Availability

If you have any questions regarding how can your particular business or your client’s business benefit out of this, head up to this link just fill in your details here and Hatio’s Customer Success Team shall be happy to take it from there.

Link: https://hatio.in/contact/

Till then, Keep learning.

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