Payments are a big part of the success of any company, small or large. Afterall, businesses cannot survive if they can’t collect money from their clients, send money to partners in other markets, or pay their employees.
For a growing number of companies employing freelancers and contractors, payouts—localized methods of payments in the payee’s currency—become just as critical an issue as payments. While usually an afterthought, building an ideal payout platform takes an urgency of its own when startups get ready to launch in mass or when established companies begin to expand internationally.
What is an ideal payout solution, then? Below seven (7) factors to consider when selecting or creating a world-class payout platform:
- Global: Choose a platform that supports all relevant markets across the globe
- Instant Pay: Make sure to include at least one instant payout option (pay someone within 5-10 seconds)
- Availability: Ensure that the platform is always-on (24/7×365), including customer support, fraud and anti-money laundering (AML) monitoring
- User experience: The payout process has to be invisible and fee-free to the recipients
- Comprehensive: The payout transactions must include relevant metadata (information on the payouts) to ensure prompt and proper crediting of the recipient account
- Technology: The platform needs to be engineered to utilize simple application programming interfaces (APIs) on which to build solutions for fast, inexpensive and error-free rollout
- Reporting: The platform must provide comprehensive, consolidated reporting (including year-end tax reports) for simple reconciliation
It should be noted that this process of building your own payout platform can take several months and require tremendous operational resources for due diligence and agreement negotiation as well as IT resources for integration, all of which will distract you from your core business.
For a quicker, more efficient and cost effective global payout solution, consider partnering with a payment gateway that could introduce you to pre-selected, vetted Payment Service Providers (PSPs) worldwide to facilitate quick partnership agreements with pre-negotiated, discounted pricing based on the aggregate volume of all of the gateway’s existing clients.
Benefits to taking this approach include speed-to-market through a single integration, consolidated reporting, regularly updated data validation and the flexibility to utilize a client portal or API.
In addition, by partnering with a gateway, you don’t need to constantly update your platform to accommodate new PSPs and payment options.
Finally, Gateways also often provide an optional level of security, compliance and reporting (e.g. tax reporting) that would enable you to focus on your core competency rather than get caught in the intricate and complex web of payment processing.
In today’s fast-paced digital world, time is money, and building an ideal payout platform is not an easy and quick task. It requires dedicated time for research, due diligence, negotiations, agreements and integrations. Partnering with the right gateway could streamline the process of building a global payment solution so you can focus on moving your business forward.