Payment gateways have been around for a while. Not only are they known for the speeds at which they help transfer money but also for the security they provide for customer’s data. Today people use payment gateways to pay for pretty much everything, including rents.
But how about using them to pay salaries? Technically it’s possible to use payment gateways to pay salaries but not many use it due to several reasons. However, almost all companies use corporate bank accounts to pay salaries because that’s how things have worked and because it’s easy to maintain records.
Although corporate bank accounts provide a host of benefits, they may have certain limits when it comes to using internet banking. (Read our article on What is a Payment Gateway and How Does it Work?)
Here’s a list of challenges that corporate internet banking face:
- Transfer Limits: Every bank has a daily transfer limit and so does internet banking. This has been done in order to stay in compliance with the Reserve Bank of India and tax department regulations.
So, if you are transferring a salary using your internet banking, then you have a daily limit on how much you can transact in a day. Besides, there’s also a limit for non-branch or external transfers. - Adding a New Transferee: Registering a beneficiary has a cooling time of 6 hours or a day. (To read more on UPI limits go to the article Paying Salaries Through UPI? See Transaction Limits for SBI, HDFC, and KredPay). Also, there isn’t any way one can verify the beneficiary account number being correct or not.
If the account number is wrong you will only know after you have transferred and the money isn’t received on the other side. If there are errors, then it becomes difficult to reconcile with failed transfers. - International Transactions: Adding or sending money to cross border customers can be a hassle. It has hefty fees plus it can turn out to be more expensive to transfer abroad. Currency exchange rate plus taxes in addition to other convenience charges, all add up to a lot of extra monies.
How Can Salary Payment Gateway Help?
Payment gateways like KredPay, unlike online banking or other banking platforms, have no limits, whatsoever. Plus, they are also as safe as it can get. Think of all the payment gateways that operate currently and you know how safe they are with their customer data.
Now imagine having a salary gateway integrated into your HRMS account. Sounds easy, isn’t it? Well, it’s easier now to integrate the salary payment gateway to the HR tool with KredPay which is built into the Kredily HRMS solution. It makes it not just easy for you to transfer salary to your employees in an instant but also in a very secure way. KredPay allows safe salary payouts from any bank account to your employees’ bank account with just a single click.
Advantages of Salary Payment Gateway
- Pay to Any Account: Your employer can pay you from anywhere in the world once they have added your account number to the salary list. One doesn’t need to have a salary account specifically in a designated bank for salary transfers. However, in the case of a salary payment gateway, you can send the salary straight into the account of your employees by keying just the mobile number linked to their account. There’s also the option of adding the account number. The best part is you can pay from any device such as a mobile phone or laptop.
- One-Click Transfer: What can be better than having a system that is quick and saves time? One-click is enough to transfer the money to your employees. The employer can avoid hassle and improve efficiency because of the batch upload features of the employees in HRMS. This fastens the submission of multiple transactions and also the verification of accounts rapidly and safely.
- Easy Set-up: Automated Clearing House (ACH) system allows banks to transfer money back and forth electronically. Through this system, merchants accept ACH payments via payment gateway. Bill payments, business to business multiple transactions, and e-commerce processing are also accepted.
- No Waiting Period: With a salary payment gateway, payments will be time-bound as the salary software makes the pay-out flexible and convenient. For example, even if you have long bank holidays ahead of you, you don’t have to worry. The payments can happen on the scheduled salary day.
- Digital Wallet: It is like an e-wallet, where you can keep all your money. The businesses can make payment to the employees in advance and the same will be added in the expenses. Having an online payment portal, you can add all your business payment forms. This can give you a complete picture of your income. It can also help with analytics such as what kind of payment terms or methods will be beneficial, which results in generating more revenue from the business. Cross-border payments are easy and without any charges as well.
How is Salary Payment Gateway Different From The Regular Payment Gateway?
The most interesting feature of KredPay is it’s a Salary Payment Gateway that companies can use to pay their employees from any Bank account to their employees’ bank account. The unique feature can save a lot of time that goes into moving back and forth to get the information and registering the account. It is the first of its kind in payroll software.
