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When we think of payouts, we think of enterprise businesses that have numerous employees, suppliers, partners, and stakeholders that they would need to handle payments for. However, non-enterprise, medium-sized businesses still have to track and monitor payments to and from suppliers, ensure timely payments to freelancers or gig workers and comply with financial regulations, which is where an integration with a Payout API would assist them greatly.
Read on to understand why even mid-sized businesses can benefit greatly from having a robust tech toolkit, including having a Payout API. By the end of this blog, you will gain greater insights into the types of businesses that can use this technology, uses cases for Payout API and why this feature may be the best choice for your business.
For a better understanding of Payout API, please refer to our previous blog post to learn about the basics and benefits of Payout API.
Why Payout API?
In addition to the benefits that Payout APIs can bring about, such as increased operational efficiency, cost savings and an improved customer experience, businesses of all sizes can benefit from the industry-wide effects of this feature.
Efficiency in e-commerce.
Streamlining online payments means faster disbursements to your suppliers, affiliates and partners. This efficiency will build rapport for greater trust and satisfaction among you and your stakeholders, fostering more partnership opportunities and driving growth in the greater e-commerce ecosystem.
Supporting the gig economy.
More and more individuals like writers, designers, accountants, or delivery riders are relying on freelance work to supplement their income or even as their main source of income. With this technology, you can more easily manage the salaries of gig workers by ensuring that they receive seamless, timely payments, promoting greater financial stability.
Compliance and security.
A Payout API can help you stay compliant with financial regulations by handling your transactions transparently with clear digital record-keeping. This helps your business maintain a higher level of security as compared to manual bookkeeping, assisting in constructing a trustworthy business image and creating trust with regulatory authorities.
Business growth.
By streamlining payout processes, reducing operational costs and improving financial efficiency, your business can promote scalable long-term growth. This growth would result in greater competition between businesses which subsequently drives innovation and economic development, not only benefiting the businesses in question, but also the final consumer who reaps the benefits of such innovation and development.
But can my business really take advantage of this tech?
Of course, we understand that there is a greater cost factor for smaller businesses compared to MNCs or large enterprises. Investments into a business' tech stack should be done with careful consideration. Thus, before even considering whether your business can afford the investment, you should consider if your business can make the most out of this investment in the first place.
The clearest use case for such a technology would be to e-commerce platforms, where money is constantly moving between parties. As a merchant, being able to instantly pay out sellers and affiliates is greatly beneficial to streamlining your operations.
If your business takes advantage of gig workers and freelancers frequently, a Payout API would ensure your workers are paid on time for every job that they undertake. No longer would either party need to keep close track of every amount owed, as these can be inputed into the API for automated payments according to schedule.
Marketplaces that facilitate sales to multiple sellers can use this feature to distribute earnings to both sellers and partners in real time. This results in less disputes between sellers when set up correctly, meaning happier sellers which results in them favouring your marketplace more often.
Typical use case for this tech.
Just as an example, imagine that you run an online retail store. You've gotten your supplies and equipment from the respective suppliers, and you've made plenty of successful sales. Come the end of the month, it's time to pay all your suppliers. A Payout API is like a digital assistant that can automatically schedule payments to all the different suppliers.
Your API will keep trach of how much money you owe to each supplier, and when it's time to pay them, instead of having to manually write and send cheques or perform bank transfers, the Payout API will be automatically triggered to send the right amount of funds to each supplier's bank account automatically.
This entire process happens without any input from you—other than the initial setup—meaning that you can essentially set it and forget it. This frees up time for you to focus on other business tasks and also prevents any potential late payments that could result in penalties.
So, what's next?
It's plain to see now that a Payout API is not reserved only for the largest companies, but any business that is looking to improve their operational efficiency for long-term growth. By leveraging this feature, your business can grow not only itself through increased efficiency but also contribute to the growth of the digital economy at large by encouraging tech literacy.
If you're ready to take the leap and incorporate this feature into your business, consider senangPay's robust and customisable Payout API to take your business to the next level. Schedule a meeting for a demo to unlock your business' full potential today!
