Just a year back, a simple housing loan meant a day spent with eagle-eyed banking officials scrutinizing sheaves of important papers. The similar story would be repeated for other repetitive payments like school fees, insurance premiums, credit card bills and more. Well, non-payment of electric bills or school fees may result in a night in darkness or a light rebuke from the authorities. But non-payment of EMI or credit card bills can have a domino effect of low credit scores, penalties and harder access to loans.
E-mandates delivers a seamless mechanism for customers to automate their recurring payments like insurance payments, school fees, utility bills, telephone payments and many more. For example, if you have signed on an insurance plan, you can schedule the premium payments through e-mandates. So, no more manual payments, constant tracking, reminders or late fees. The payment is directly debited from the customer’s account
Friction-less payments has truly arrived with e-mandates. By removing the friction, the benefits that manifest themselves include,
Collections become easier and cheaper
With e-KYC, the small ticket loans have become more ubiquitous. But the collections have remained in the earlier era with post-dated cheques and ECS where in default becomes very common. But with e-mandates collections becomes seamless as customers do not have to personally hand in the payments.
Smarter and digital options to make payments can drive insurance buying and savings behaviour The pain-free options of payments can encourage the silent unbanked population to go ahead with digital payments, investments and others. For banks too, it is a win-win proposition as repetitive payments become assured and easier to manage.
Digital payment penetration
Globally governments are pushing for digital payments for ease in usage, security and transparency in transactions. Hassle free payments and collections are the first step towards unlocking newer business models. For example, Google has moved ahead with carrier billing for its play store applications which means a big cut for service providers. Emergence of e-mandates for subscription billing can deliver a boost to content creators.
Online transactions have been considerably slow due to poor banking services and net-banking penetration. The emergence of e-mandates and other digital payment services an fill up this lacuna by enabling a seamless experience for customers.
Revolutionize Digital Payments with Paycorp.io
Make your digital payment platform fast, safe, and fool-proof with Paycorp.io. We offer a diverse combination of cloud-based payment processing for various businesses. Whether you are an SME, a larger company, or a digital lender, we have a cloud-based, end-to-end payment solution for everyone. Frame your instructions, disburse and collect payments, realize revenue, and reconcile payments simply and efficiently with our robust payment solutions.