Online payment platform Peach Payments now offers all its South African merchants free daily automated settlements. This means payments processed via Peach Payments will automatically be transferred to online businesses’ bank accounts the next business day at no additional cost.
This offers merchants tighter control over their cash flow, and makes bank reconciliation easier for entrepreneurs, says Josh Shimkin, head of SME Growth and Marketing at Peach Payments.
Previously daily settlements were automatically available to enterprise-level merchants accepting credit card payments, but smaller merchants were settled weekly on Thursdays. Settlements for each of the 13 payment methods Peach Payments offers – such as Instant EFT and Masterpass – would previously land in their bank accounts as separate payments.
The new daily settlement will be a lump sum payment into the merchant’s bank account, accompanied by a reconciliation email detailing the different payment methods that make up the lump sum. The reconciliation file will also be available in the reporting tab of the merchant’s dashboard. This settlement will happen automatically, and need not be specifically requested by merchants, Shimkin says.
“We have been working hard to make daily disbursements available to all our merchants, irrespective of size,” Shimkin says. “Daily settlements have become more important as we continue to expand our services to the SME market.”
He says unlocking value for SMEs is high on the company’s agenda: “The TIPS Real Economy Bulletin found that small formal businesses directly generate a third of value added in South Africa. Assisting small businesses to unlock their cash flow, even in a small way, can make a real positive business impact in South Africa.
“We want to help small businesses scale and succeed, and one of their key concerns is cash flow. Daily disbursements help to overcome a major headache for businesses,” Shimkin says.
A minority of merchants who have activated Mobicred as a payment method will still be settled on Thursdays for Mobicred only, but efforts are under way to settle Mobicred daily as well.
Daily disbursements are currently available to all South African merchants, and will be rolled out to Kenya and Mauritius in due course.