What are mass payments?
Mass payments (mass payouts) is the process of transferring money to multiple recipients at once. Systems that make such transfers provide the ability to send multiple payments at the same time. In this case, the payment method and currency can be arbitrary.
The service allows you to download data about recipients through spreadsheets. It saves time on manual data entry.
You can send a mass payment manually, or, if the amount is always the same, you can set up regular payments.
How does mass payments work?
The principle of operation of mass payments is based on the use of API. First, the company sends a request for a mass payout to the payment gateway through the API. Further, the payment gateway processes each request, then generates the required amount and sends it to recipients.
For example, the PayOp API is great for customers who want to automate sending payments in real time. The company provides the ability to simultaneously make hundreds of payments. In addition, PayOp provides the ability to make payments by various methods:
- International cards Visa / Mastercard;
- Visa / MasterCard (RU cards);
- QIWI Wallet;
- Yandex.Money and others.
Mass Payouts are optimal for processing wages to subordinates, paying affiliates, for e-commerce marketplaces.
Mass Payments Processing
Mass payments are a multi-step process that is based on the transaction processing process. This means that connecting a traditional payment processor like PayPal or Payoneer is not enough for mass payments.
To make mass payments you need:
- Connect partners;
- Collect bank details for payments;
- Provide data validation checks.
In certain cases, some enterprises have to integrate the payment platform with ERP systems.
Benefits of Mass Payments
- Security. One of the reasons mass payouts can be a great solution for your business is related to data security. Whether it is a merchant or a cardholder, data security is important to everyone involved in the transfer of payment information. For example PayOp is fully PCI DSS compliant. In addition, transaction tokenization takes place, which makes data theft almost impossible.
- Optimization of work processes. PayOp Mass Payments allow you to use a single platform to send and monitor transactions. It also saves a significant amount of time for payments to each recipient separately. As the business grows, the advantage of this processing method becomes more and more obvious, since with the growth of the customer base, you only need to update the existing table.
- International payments. While many payment solutions focus on making payments locally, PayOp provides a mass payment service for over 170 countries with local currency support.
All this helps to avoid additional commissions.
If, in the case of using traditional payment systems, the payment takes place within 1-3 days, then using mass payments this period is significantly reduced.
Mass payment trends
Technological advances have an impact on all processing methods and mass payments are no exception. Blockchain technology can be considered the fastest growing. In many other cases, companies are improving current practices by integrating new technologies and adapting them to market needs.
The bottom line
Mass payouts are a powerful tool for processing a large number of transactions. With it, you can get more control over payments. In addition, international mass payouts go a long way towards saving on fees and charges, including currency conversion fees.
Regardless of which payment gateway you choose, make sure it provides all the protection you need.
If you want to connect mass payments for your business – register a free account or contact our support team. Within 1-3 business days you will receive a fully integrated payment page on your website.