Why bulk payment services are a matter of when, not if

Bulk payment services can handle both international payments and domestic payments, making automatic bank transfers via SEPA, Faster Payments, ACH and more.

OpenPayd Bulk Payments

October 26 2021

Bulk payment services can handle both international payments and domestic payments, making automatic bank transfers via SEPA, Faster Payments, ACH and more. This customer-centric, API-driven approach is making bulk payment integration a matter of when, not if, for many businesses.

As a business, challenges will always come with growth. When growing internationally this is especially true - operating across borders will always bring unique challenges, many of which will be unforeseen. 

One challenge which can be somewhat expected however, is managing payments. As you expand, you may well need to pay a variety of suppliers, contractors, associates and more. These payments may all be going to different territories in different currencies perhaps with different deadlines. 

In order to make this all happen, a member of the accounting or finance team needs to manually make each of these payments, which is problematic for a variety of reasons. Firstly, the sheer volume of payments that need to be made may require additional staff to be hired to cope with the workload. 

Secondly, costs begin to add up. International payments are usually far more expensive than domestic ones, with foreign currencies needing to be purchased and transaction fees often attached. Over time it becomes very costly for your business to continuously make these necessary payments. Finally, there is the issue of human error. No matter the talent and experience of employees, it can never be fully alleviated, and it is only more likely to happen as workloads increase. 

It is because of these challenges that bulk payments were established. OpenPayd offers specialised services for every type of payment, including bulk payments, all over the world. Below, we explain just how they work and why they’re so useful. 

What are bulk payments?

As it sounds, a bulk payment system allows a payor to make multiple debit payments to a list of multiple recipients in one action. Your bank statement will reflect each payment made, despite all payments being completed in a single action.

These systems are known by different names across the world. In the Eurozone, transfers are made using SEPA credit transfers, in the US they use ACH (Automated Clearing House) transactions and in the UK we mainly use Faster Payments or CHAPS. OpenPayd can support all of these payment systems, and we offer domestic bulk payments, international bulk payments or a combination of both - all in one single action.

Reasons for needing a bulk payment system

You may not currently envision your company needing to make many payments, but you might be surprised how commonplace they can become. 

  • Contractors and freelancers: As you grow internationally it’s not unlikely that you may want to hire contractors and freelancers to perform certain duties. After all, it’s easier than establishing a physical office and hiring permanent staff members in every territory you operate in, and with the world becoming increasingly accustomed to working from home, that type of move would often not be necessary anyway. Your requirements may include entire teams of developers, designers, marketing staff and more. Making individual bank transfers to each of them, at their individual rate and in their own currency, becomes far easier with bulk payments.

  • Refunds: Obviously no company plans to issue lots of refunds, but they are part of business and the more you grow, the more refunds you will have to process. If you are operating internationally this can result in a high level of international payments, perhaps of small values, and if you are paying a flat transaction fee on each refund, this becomes a huge cost.

  • Dividends: Depending on your business model you may have a large amount of dividends to pay out in different currencies. These may be high values, so without bulk payments you may be continuously being stung by the exchange rate and transaction fee for each dividend you pay. 

  • Contests/Referral campaigns: You may decide that some form of contest or referral campaign would be beneficial for your marketing, offering customers a financial reward for certain actions. This could mean hundreds or even thousands of payments needing to be made - again, perhaps of small values - which become an operational and economical nightmare for your finance team. 

The key advantages of bulk payments

We have already touched on why a bulk payment system makes life much easier for businesses, but their key advantages are worth delving into. 

Speed 

Perhaps the main advantage of bulk payments, there is no quicker way to make multiple payments from one account than by using a bulk payment system. As for bulk payment processing time, this will vary depending which countries/territories you are sending payments to, but it is usually very quick.

This is particularly useful for instances such as paying contractors and freelancers. As with everybody else, contractors have bills needing to be paid and one of the best ways of retaining top talent is to make sure they are paid routinely and punctually. 

Security and error reduction 

Bulk payments add security in a variety of ways. Firstly, they need to adhere to strict security protocols - OpenPayd uses the latest encryption technology to ensure data is scrambled as it is sent. Secondly, security comes through regularity. Sending payments routinely in bulk makes it easier to spot when things change. Of course, payments may well be different than the last bulk payment, but this type of system can spot when things look suspicious. 

Thirdly, OpenPayd uses a particular type of automation for complete error reduction. As our Senior Software Quality Assurance Engineer Yusuf explains: “When uploading a bulk payment, all information is checked in detail thanks to the banking validation system. We then check if there is money in the payer account. If there isn’t, we transfer the amount to be paid from the customer's primary account - ensuring that payments are not delayed. What’s more, any irregularities will be displayed on your panel for review. 

Futureproofing your business 

Partnering with a bulk payment provider such as OpenPayd doesn’t just allow you to better manage multiple payments, it sets your business up for future growth. We provide payouts across many countries, meaning that no matter how you grow, you and your clients will be supported by an easy-to-use, customer-centric provider. 

Having this end user experience and customer-centric approach at the forefront of your thinking can separate you from competitors.

Bulk payments for gig economy/sharing economy platforms 

In recent years we’ve seen huge developments for the gig or sharing economy, with notable examples including Uber, Deliveroo and AirBnB. This model has changed the way in which people need to be paid, as ‘employees’ are in fact a vast number of contractors, perhaps needing to receive relatively small amounts regularly. 

The gig economy continues to grow, with scores of businesses being set up and marketing themselves as ‘the Uber of XYZ’. As so many platforms enter the market, offering a seamless payment solution through a single API integration will enable contractors to get paid faster - making your business a far more attractive option than your competitors. 

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With money being saved, operations becoming easier, errors being eliminated and offerings becoming more valuable, there are no real downsides to a bulk payment system. If you are needing to make multiple payments on a regular basis, partnering with a bulk payment provider should be considered as a matter of when, not if. 

If you’d like to know more, contact us today and we can explain exactly what we can do for your business and how it would work. 

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Posted on 26th October 2021

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