Finance

Optimising Financial Processes: A Guide to Split Payments and Payouts Using Flow Payments by Fondy

By Manuela Willbold | April 5, 2024

Table of Contents

Are you a business looking to efficiently execute instant payouts and split payments to merchants, consumers, or partners at a lower cost?

Then discover Fondy’s Flow solution for online businesses including marketplaces and platforms that streamlines money movement and management through a unified platform.

Flow Payments simplifies payment flows by providing a business account that facilitates payment acceptance, settlements, split payments, and payouts eliminating the need for multiple accounts and expediting sales.

Additionally, Flow Payments offers features like split payments, reconciliation, and instant settlements enhancing cash flow monitoring and automating payment collection for more efficient operations.

Flow Payments’ Capabilities In Handling Split Payments And Automated Payouts

Flow Payments feature streamlined split payments and automated payouts by seamlessly distributing funds between a marketplace and its partners, including customers, merchants, and sellers. Users can automatically split a single payment among multiple recipients, offering flexibility in charging commissions and fees. This feature enables marketplace owners to manage payments, ensuring partners receive instant payouts efficiently.

For instance, on an EdTech platform, when a student’s payment is settled, the account’s API can split the payment, sending a portion to the tutor’s wallet. This split payment process ensures efficient fund distribution. However, compliance with KYC and KYB procedures is essential, and this can be facilitated through Fondy Identity, simplifying the verification process for sellers.

Fondy offers instant payouts, a process typically completed within 30 minutes, contrasting with the several days traditional payouts take to clear. Automation streamlines this process, eliminating the need for manual initiation with each transaction. Fondy’s Flow Payments facilitate instant payouts, linking supported bank accounts or cards for seamless transactions.

With a single API, partners in 35 countries can receive payouts locally in their respective currencies. This feature operates round the clock, including weekends and holidays, ensuring partners receive funds promptly.

Benefits of Split Payments with Flow Payments

● Enhanced Customer Experience:

It streamlines operations and saves valuable time and resources by automating the splitting of payments among various partners, including online sellers, content creators, tradespeople, drivers, and customers. This automation simplifies processes and contributes to an improved customer experience.

It effectively reduces cart abandonments and failed payments by implementing split payment facilities, resulting in higher customer satisfaction and improved conversion rates. This enhanced customer experience is achieved through seamless transactions and a smoother payment process, ultimately leading to greater customer trust and loyalty.

●Business Partnership and Affiliate Management:

It offers comprehensive financial flexibility to both you and your partners, empowering you to customise commission models and fee structures for a personalised approach to financial management. By incorporating split payments, you can streamline operations, decrease operational expenses, and enhance user experiences for merchants and customers, thus driving success through efficient operations.

Additionally, it allows you to facilitate revenue sharing with partners, affiliates, or multiple stakeholders by enabling them to open GBP business accounts, ensuring instant fund reception without any charges or currency conversion fees, thereby simplifying financial transactions and optimising revenue distribution processes.

Advantages of Automated Payouts with Flow Payments

● Streamlined Operations:

Automated payouts offer significant advantages in reducing both costs and time expenditure. Traditional paper invoices often require up to a week for processing, incurring expenses for business owners. In contrast, payment automation accelerates this process while enhancing efficiency at a lower cost.

This streamlined approach minimises administrative workload and ensures timely and accurate payments to partners or freelancers. Businesses can optimise resource allocation, enhance financial management, and foster stronger relationships with their partners or freelancers through prompt and reliable payment processes by automating payouts.

● Improved Cash Flow Management:

Utilising payment automation enables businesses to strategise the timing and method of partner payments, facilitating improved cash flow management. By leveraging Fondy’s Flow Payments’ payout management features, companies can accurately track and forecast cash flow, optimising decision-making regarding payment schedules.

This empowers businesses to take advantage of early or bulk pay discounts while mitigating late fees and duplicate payments. Its capabilities support businesses in maintaining a healthy cash flow, ensuring efficient financial operations, and maximising cost savings.

Getting Started with Flow Payments

Here are some steps a business can take to implement Fondy’s Flow Payments for split payments and automated payouts:

Start accepting multiple payment methods, such as open banking and cards.
Create custom invoices and payment links for easy distribution.
Create custom checkout landing pages tailored to its branding.
Offer instant settlement of funds sent via Pay-by-Bank to avoid delays.

Conclusion

Fondy offers a leading one-stop payment solution tailored for marketplaces and platforms, facilitating seamless money movement without friction. Its holistic range of services empowers businesses to grow locally and internationally by providing efficient management of funds, effortless split payments, and streamlined payouts through a single API. Including multi-currency accounts, the platform further simplifies and expedites the payment process, enhancing the overall user experience. Additionally, the subscription payment models offer flexibility and customization options, allowing businesses to establish preferred rules and configurations for payment retries, ensuring transaction reliability and consistency.

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Manuela Willbold

Online Media & PR Strategist at ClickDo

Blogger and Educator by Passion | Senior Online Media & PR Strategist at ClickDo Ltd. | Contributor to many Education, Business & Lifestyle Blogs in the United Kingdom & Germany | Summer Course Student at the London School of Journalism and Course Instructor at the SeekaHost University.