{"id":4880,"date":"2020-10-21T01:00:47","date_gmt":"2020-10-20T19:30:47","guid":{"rendered":"https:\/\/razorpay.com\/blog\/?p=4880"},"modified":"2025-05-05T14:36:56","modified_gmt":"2025-05-05T09:06:56","slug":"how-razorpayx-streamlines-money-movement-for-e-commerce-businesses","status":"publish","type":"post","link":"https:\/\/razorpay.com\/blog\/business-banking\/how-razorpayx-streamlines-money-movement-for-e-commerce-businesses\/","title":{"rendered":"How RazorpayX Streamlines Money Movement for E-commerce Businesses"},"content":{"rendered":"

The e-commerce industry in India has seen an extensive transformation over the years. We cannot go wrong in saying that the industry has pushed us into becoming a digitally empowered population.\u00a0\u00a0<\/span><\/p>\r\n

Smartphone penetration, along with increased internet usage, has pretty much blown up online sales like never before.\u00a0<\/span><\/p>\r\n

An e-commerce business has to have a good payments solution<\/a> to accept digital payments<\/a> from its customers. But, it also has to think about <\/span>other forms of <\/b>money movement<\/b><\/a>.\u00a0<\/span> \"e-commerce RazorpayX solves all problems with business banking.\u00a0<\/span><\/p>\r\n

RazorpayX vs traditional business banking<\/span><\/h2>\r\n

The problem is, the way business banking is carried out is not the most efficient way to manage finances. Let\u2019s take a look at how RazorpayX solves all forms of money movement.\u00a0<\/span><\/p>\r\n

Nodal account<\/span><\/h3>\r\n

A <\/span>nodal account<\/b><\/a> is a special internal bank account that is mandated by the Reserve Bank of India for businesses that are intermediaries. A nodal account helps connect customers with their sellers.\u00a0<\/span><\/p>\r\n

There are multi-layered interactions between several unknown parties \u2013 customers, vendors, payment gateway<\/a>, etc. If payouts between these parties aren\u2019t done on time, it leads to an erosion of trust.<\/span> A nodal account safeguards the interests of customers and vendors so that payments are collected, processed and made to relevant vendors without undue delay.<\/span><\/p>\r\n

An e-commerce business, especially a marketplace, needs a nodal account that operates at scale with full control and efficiency.\u00a0 <\/span><\/p>\r\n

The problem is, opening a nodal account with a bank takes time. The bank needs to perform due diligence, and sometimes, it can take up to a few months.\u00a0<\/span><\/p>\r\n

And, RazorpayX has all the required features and more.<\/span><\/h3>\r\n