How split payments and payouts can transform your online business

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Date: 3 April 2024

Two friends split the cost of a gift they have just purchased for a friend

Wouldn’t it be great if your ecommerce customers could pay using more than one card or even split the cost with friends? Or consider the advantages of being able to automatically split payments when it comes to paying your suppliers and wholesalers?

The good news for online traders is that it’s easy to accept split payments, make instant multi-party payouts and split payments to clients and partners with a flow payment system. If you run an ecommerce business, this can be an absolute game-changer.

Using a system like Fondy Flow Payments, for instance, allows you take advantage of split payments online and ecommerce split payouts - speeding up your payment processes, enhancing the customer experience and improving your cash flow.

With Fondy Flow Payments, you get a complete financial management system that gives your customers payment flexibility and makes it easier for you to pay your suppliers, in any currency. You can reduce payment delays and cut card processing costs by up to 80%, giving you a fantastic foundation for growing your business - locally and internationally.

What are split payments?

A split payment enables merchants to divide single transactions among multiple customers. Imagine that you and a friend are buying a gift for someone and you want to share the cost. This is easy in a shop. You could pay with more than one payment card or even use cash, a voucher or loyalty points as part payment.

Many retailers will let customers split payments in-person in their shops but they won’t let them split payments when they are shopping online. Splitting payments online is only offered by merchants that have adapted their payment gateways to accept multiple or split payment sources, such as more than one debit or credit card.

The demand for online shopping split payments from customers is growing - especially for gifts, travel and big purchases. It’s something that customers really appreciate and offering this facility could help you to grow your business.

What are split payouts?

Imagine that a customer buys three items from your website but the items you’re selling on your marketplace come from three different suppliers. Split payouts allow ecommerce websites to pay the correct amounts to the relevant suppliers automatically, minus any commission. A marketplace payment gateway like Fondy does this by transferring the appropriate funds from a platform account to an ecommerce marketplace revenue account and to individual merchant Wallets.

How does Fondy Flow Payments work?

Fondy offers an easy way for customers to pay and for partners to get paid. With Fondy, online businesses get access to a Master and Wallet account allowing them to securely process payments (including split payments and payouts) using open banking via bank transfer, cards and digital wallets in their client’s local currency, without having to pay currency conversion charges.

To process online payments such as split payments, businesses and merchants need a merchant account and a payment gateway or PSP. The gateway or PSP encrypts the customer payment details and facilitates the transaction by communicating with the acquiring bank. This can remove delays of up to 16 days and cut the costs of processing card payments.

How can split payments and split payouts help my business?

If you run an online business, a marketplace or ecommerce platform, a system like Fondy can deliver the following benefits:

  • Save time by automating split payments and split payouts; no more manual calculations and separate transactions.
  • Provide more payment choices for customers and boost customer loyalty.
  • Help customers to avoid exceeding their credit card limit by allowing them to pay with more than one card.
  • Simplify revenue sharing with multiple stakeholders, including business partners, affiliates, freelancers and suppliers.
  • Cut the administrative workload and improve the timeliness of payments.
  • Benefit from better cash flow tracking and sales forecasting.
  • Streamline refund processing to improve customer service and save time on admin.
  • Better manage recurring payments, such as subscriptions, enabling your business to build consistent revenue streams .
  • Speed up onboarding for clients and partners using digital wallet profiles.
  • Get valuable insights into your revenue sources, payment trends and user behaviour - guiding your strategic decisions and highlighting new business opportunities.
  • Choose a system that offer complete accuracy and enhanced financial transparency .

How to get started with Fondy Flow Payments

Signing up with Fondy Flow Payments is easy. All the information you need is on the Fondy website and the customer support team is available seven days a week to answer questions by email or over the phone. Here’s how the process works:

  1. Tell us about your business and the payment solutions you’re looking for.
  2. We’ll review your application and get back to you within 2-4 office hours.
  3. If approved, upload documents for KYC & KYB checks to activate your account.
  4. Start using Fondy and enjoy your new Payment Flow.

Copyright 2024. Featured post made possible by Fondy.

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