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For businesses that rely on payouts to deliver funds to sellers, vendors, gig economy workers, or partners, the time to reevaluate payouts is now.
Adopting faster payout processing technology has the potential to unlock millions by streamlining operations, enhancing cash flow efficiency, and giving users instant access to funds.
With faster and more reliable payouts, enterprise businesses get faster access to their resources. Not only that, they gain a competitive edge and attract new users or partners who prioritize speed and efficiency.
In this article, we explain how you can optimize payouts by leveraging real-time payments rails and transitioning away from a complicated system.
The current state of payouts
Most enterprise businesses paying out funds to their users have a multi-provider setup. One provider accepts payments, and another provider pays out funds. These providers can be specific to a country they operate in, adding even more complexity for businesses that operate globally.
There are three main downsides to this setup:
Slow payout speed: Money has to move between the accounts of various providers, which takes time. As a result the speed at which a business can payout funds to their users is reduced, creating a bad user experience.
Cash flow inefficiencies: Business funds can be tied up in transit for days. For enterprise businesses processing billions of dollars a year this means you potentially don't have access to millions of dollars worth of cash flow.
Error prone: Multiple providers come with multiple integrations to maintain and manage. This causes increased complexity, increasing the risk of money movement errors and making it more difficult to troubleshoot when things go wrong.
The growing international demand for faster payouts
Gaining access to funds faster is a great way to optimize your business in turbulent economic times. Faster access to money leads to more interest, faster investing in research and development, and reduces the need for external financing.
We found that 75% of small to medium sized business (SMB) platform users who use a platform or marketplace to run their business expressed the need for same-day settlement or faster. Meanwhile, 52% would consider using a paid accelerated or real-time settlement solution.
Another study, led by the Pew Research Center, found that 70% of gig workers would prefer to work for a company that provides near-instant pay.
Gig platforms can attract top-performing workers by offering access to faster access to funds. A payout system that facilitates real-time payments that will streamline payroll, paying out benefits, and reimbursing workers.
Not just businesses are prioritizing faster payouts. Governments worldwide are investing in real-time payments rails to improve overall market efficiencies. Developing faster payment rails allows for money transfers between parties to take seconds rather than days, boosting economic growth.
For businesses looking to take advantage of these developments, it pays to choose a provider that has access to these to efficiently provide faster payouts.
Move money faster with Adyen
At Adyen, Payout Services are run on our single banking infrastructure. We remove unnecessary delays and multiple providers when moving funds, freeing up millions in daily cash flow for our customers.
By moving funds from point A to B on our single banking infrastructure, payments and payouts can be processed up to three days faster than the industry standard.
Adyen's single banking infrastructure enables daily, hourly, immediate or on demand settlement of processed payments seven days a week, making funds available sooner for payout.
Real-time payments also bring liquidity and cash flow management to new levels. With real time settlement and payouts, businesses can provide richer user experiences to their customers.
If a business is processing one billion annually, two days of freed up cash flow equates to 7.7 million extra cash. This is based only on the industry settling on business days (261 days a year) and Adyen settling also over weekends (365 days a year).
Just imagine what the impact of winning 1-3 days faster payouts can do.
The benefits of faster payouts with Adyen
The benefits of running payouts on our single banking infrastructure aren’t confined to speed. Here are some more ways your enterprise business can enjoy the added benefit of Payouts.
Reduce operational overhead
Replace time-consuming manual tasks with more efficient ones. By running payments and payouts on our single financial infrastructure, you can free up valuable time and resources.
One provider, global coverage
Simplify your payments and payouts system by consolidating multiple providers into one. Our global reach and solid banking infrastructure ensures first-class performance at a global scale.
Reduce hidden fees
Leveraging Adyen's single platform combined with a local payout network, businesses can save on cross border transfer fees, enabling a seamless user experience across payment processing, banking and payouts.
Improve users experiences
Most importantly, faster payouts create better user experiences. Instant payout options allows you to attract and retain users with a competitive offering and can be turned into a new revenue stream for your business.
The shift towards a real-time economy has created a higher expectation for fast payouts.
The potential benefits are vast. Businesses that invest in these technologies can unlock new revenue streams and opportunities. By providing users with fast, convenient, and reliable payouts, businesses can gain a competitive edge and attract new users who prioritize speed and efficiency.
As such, it pays to prioritize adopting a faster payout solution to stay ahead of the curve.
A wealth of new revenue streams awaits the payout pioneers.
Want to learn more? Discover Payouts.