Customer love in the time of payouts.

Cashflow is king. Payout’s the King’s hand.

For a company to run smoothly, monitoring the money that comes in is crucial. However, it is just as important to also know exactly what goes out and how. Any company nailing the ongoing costs of running the business just as well as the revenue generation is likely to stay financially healthy. Hence, understanding how to efficiently bring money in, should be paired with mastering payouts.

First thing first. What are payouts?

If you are a merchant and you just want to know how payouts can become a business advantage, please skip to the next section!

You stayed, so let’s talk definitions.

Defining a payout is easier said than done as the term itself can mean different things depending on the context and the type of business that executes it. So, we asked Google for some help, and after a 0.40-second search these were the findings:

Payout /ˈpeɪaʊt/

Oxford Languages: A large payment of money, especially as compensation or a dividend: An insurance payout.

Collins English Dictionary: A payout is a sum of money, especially a large one, that is paid to someone, for example by an insurance company or as a prize.

WordReference: Money paid, expended, or disbursed, as a dividend or winning: He went to the betting window to collect his payout.

Cambridge Dictionary: A sum of money that is paid to somebody: a lottery payout of 10 million euros.
Money paid by a company to its shareholders as dividends: an annual payout, a dividend payout.
Money paid to someone from an insurance agreement: an insurance payout.

Just by quickly browsing through different definitions, it becomes clear that when talking about payouts it is almost inevitable to mention different use cases to express what they are for. Also, during our research, several synonyms popped up depending on the subject and industry; refunds, reimbursements, or pay-offs, for instance.

Making payouts great again.

We will explore different use cases in a bit. For now, let’s consider the following common denominator. Paying someone is a precious opportunity for businesses to build trust – which ultimately translates into customer loyalty.

Regardless of the industry, payouts must be easy to request, safe to conduct, and instant to process. Consumers are getting more impatient than ever. Indeed, waiting days for payment (rightfully owed) to reach its destination is a cause for frustration. Relationships are at stake.

If we break it down into the three cornerstones, easy, safe, and instant, we will notice precisely how open banking APIs can help you excel in payouts.

Easy to use.

Requesting a payout must be a breezy experience for the customer. It doesn’t matter if you are starting a relationship or continuing one, you don’t want to serve the customer complex forms and manual input. It leads to frustration or drop-offs, and they are error-prone.

Instead, if you serve them an interface they recognize, with little manual input, with as few clicks as possible, you increase conversion rates and remove potential manual errors. With open banking APIs users authorize with a Strong Customer Authentication (SCA), like BankID, and select what account they want their money transferred to. Easy-breezy!

Safe payouts.

In a world where fraud, money laundering, and technical mishaps are as common as rain on midsummer’s eve (it’s a thing!) any business should be cautious when transmitting money.

However, a Finshark payout is never just a payout. We are verifying the receiving account and matching it to the intended recipient. If they don’t match, the payout can be put on hold or red-flagged in your systems.

We also perform real-time Transaction Risk Analysis (TRA) that happens instantly by looking at live data in the receiving account. Payouts that pass the test won’t require manual intervention.

Instant settlement times.

Imagine a friend scheduling a lunch, in 1-3 bank days. Like, what?! Why would consumers accept that for their money?

Don’t leave your customers in the dark, wondering when and if their money will make it to their accounts. With Finshark’s proprietary bank connections, payouts are done instantly. Even at night and on weekends!