Do you have multiple recurring payments that you need to track? Is it getting difficult waiting for the manual approval processes to progress? The need for more seamless and instant procedures for payments is the need of the hour. Given this increasing demand for the same along with increasing advancements in technology successfully resulted in the introduction of e-mandate.
It is highly popular today so the majority of the top industries are investing in this e-mandate process for their respective businesses. It greatly helps them streamline their processes and benefit from a more systematic approach to running their operations smoothly. Top industries that have recently adopted e-mandate include the wealth management industry that has greatly benefitted by offering customers better financial portfolio management services, the life insurance industry that has helped customers save time and energy by setting up automatic debits of recurring insurance payments, etc.
E-mandate helps you to automate recurring payments
What Is E-Mandate?
E-mandate has garnered great acknowledgment and appreciation in the last few years and so it is time to understand and implement the same for your business success. Before we start discussing the multiple advantages of e-mandate and why it is so popular today, let us first understand what is e-mandate and how it works below.
It is basically a payment service that is digital in nature and introduced by the NPCI (National payments corporation of India) and RBI. It facilitates the process of recurring payments for the majority of businesses by effectively improving their IT infrastructure. The basic meaning of a mandate is an instruction given by an individual to the concerned bank, allowing them to debit a certain amount from their account. But what is e-mandate?
E-mandate is the electronic or digital form of the same mandates which are used by different businesses of all categories and sizes, to manage their recurring payments efficiently. With the use of the e-mandate process, the hassle of setting up manual reminders and staying alert to avoid unnecessary fines and penalties for missed payments is eliminated completely.
Before e-mandate, businesses used the traditional mediums like SIPs, premiums, etc., however, they all required physical form submission from the end-user with proper details and their signature. This directly increases the time taken for further progress of the entire process. Let us discuss the top benefits of e-mandate below, now that you know what is e-mandate.
Advantages of E-Mandate
#1 Improved Customer Retention
As the majority of the banks today are allowed to use e-mandate, it has become a top choice for customers too. For the same reason, with the adoption of e-mandate by businesses, the most crucial advantage for businesses is increased customer retention. This is due to the ease of one-time authentication needed by customers for them to enjoy hassle-free purchasing of goods and services without any interruptions. Moreover, this also encourages customer loyalty.
#2 Less Time Consuming
Out of all the potential benefits, this one is the most effective for the customers as it reduces the time required by them to finalize and pay for the purchase of a product or service of a business. This is only possible as when they use e-mandate for the first time, the customer information in regards to the transactions gets captured with e-mandate, eliminating the need for the customers to re-insert their info. For businesses, e-mandate and this database further aid auto-reconciliation.
#3 Reduced Manual Effort
One of the other major advantages of e-mandate for businesses as well as the customers is the reduced manual effort in the overall procedure of payments. With the help of e-mandate, the auto-debit feature that allows automatic debits for recurring payments, customers no longer have to go to the concerned business website to log in and make payments manually each time. Additionally, e-mandate also streamlines the overall operations for businesses directly facilitating continuous cash flows for them.
#4 Simple Set-Up Process
The biggest advantage of e-mandate is no doubt the simplicity of the entire process of setting up an account. It is highly user-friendly and it does not require much except your customer’s bank account details or card details to start the enrolment process to begin a recurring payment plan for a particular service or product.
Overall, to conclude, e-mandate is a blessing for businesses and individuals as it reduces the efforts required to track and make timely recurring payments greatly. Additionally, the overall approval with an e-mandate takes a maximum of 3 days, as opposed to other mediums that go up to 40 odd days. The entire process is also very easy to understand and instant as it only involves only 3 steps, starting from entering the desired amount then proceeding to email verification before finally approving the same for approval with an e-signature. The best part, you only need your Aadhaar card to enjoy this safe and secure method to manage your recurring payments. Try it today!