Razorpay’s mission and vision lie in the objective of making the payments easier; making it super-simple for businesses to accept and receive payments.
While we had solved most of the problems with accepting payments, a pressing problem in the market has been the lag at which a business receives the settlement. The industry average is usually 2 days after the payment has been captured for most of the payment methods. But now, there are solutions in the market that have same-day settlements as well.
Razorpay also has one. The Razorpay Early Settlements product has been pushing boundaries to get settlements to the merchants on the same day and in certain cases, in almost real-time.
While we managed to reduce the time of settlement from almost two days to the same day, our businesses wanted the settlements to happen instantly and at the payment-level.
So, we could identify two major problems here:
- Settle instantly
- Settle at each payment level
Razorpay, with its quest to innovate to give a superior customer experience, has come up with solutions for both.
For the first problem, once you are enabled on Scheduled Early Settlements, if you trigger On-Demand settlements, the funds will get settled to your account almost instantly. In 99.8% of the cases, within 10 seconds! Yes, correct! You can get your settlements in almost real-time.
For the second problem, Razorpay has now exposed APIs to trigger On-Demand Settlements without having to come to the dashboard. What this does is it also allows you to automate when the APIs are to be requested!
By automating the API call, when businesses receive a notification (known as webhooks) for a successful payment capture, they can call the on-demand settlement API to settle the same amount.
Businesses can also add the payment ID value in the request for reconciliation purposes at their side. You can read more about the API in our API documentation section here.
For example, let’s say you run a trading service and you want access to the money as soon as a customer pays since stock prices can change every second. Razorpay provides a webhook that notifies you when a payment has been captured. On receiving the webhook, the mutual fund marketplace can trigger the on-demand settlement API to settle the same amount, almost instantly.
This opens quite up a few opportunities for innovative startups. You can improve your operations and increase the speed of your customer’s journey. More importantly, it lets you get a competitive edge by developing something new that wasn’t possible earlier.
Here’s what Razorpay Early Settlements has to offer you:
- Get settlements within a few seconds if you are on Scheduled Early Settlement
- Integrate with the On-Demand Settlements API to automate the on-demand settlements on your end depending on your use-case. It can be triggered at particular times of the day or at the occurrence of a particular event
- No restrictions on the settlement size during non-banking hours
If you want to get enabled on Early Settlement, you can raise a support ticket here.