Mass payment is the method of paying multiple recipients online at the same time, such as during payroll. Employers can set up mass payments as one-time transactions or recurring automatic payments (if the amount is always the same). Employers can use mass payments regardless of the local currency, location, or payment method.
How does the mass payments process work?
Mass payments are carried out through technological platforms and payment services companies. Instead of waiting for a check in the mail, recipients receive a link to their email or mobile device where they can access the payment through a secure online account.
From there, recipients can choose from several payment methods: a transfer to their bank account, receiving a payment card, as cash at a pickup location, or put it towards online purchases. Recipients can use money transfer services such as PayPal to spend their earnings as well.
Senders can use payment logs to keep track of batch processing and export payment data to spreadsheets or finance applications.
What is batch processing?
Batch processing is a method used in mass payments where all the day’s transactions are processed at once instead of one at a time. This payment processing approach saves time and increases efficiency.
What are some benefits of mass payments?
Mass payments are a faster, easier, and more cost-effective way to pay employees. Instead of sending a worker a check by mail, recipients can receive a link through email or phone to approve payment through a secure online account. They can then transfer the money to their bank account, use it on a payment card, pick it up at a cash pickup point, or use it to make purchases online. Many businesses use a payroll solution for mass payments.
What are some ways to receive mass payouts from payroll?
There are a few ways employees can access funds through mass payments. Businesses can distribute prepaid cards that employees use immediately with a specific limit, opt for a direct transfer into the employee’s bank account, or use e-wallets or international checks.
When should companies use mass payments?
Mass payments are convenient for companies that handle a large number of transactions on a regular basis, such as:
- Freelance fees
- E-commerce platforms
- Online marketplaces:
- Affiliate marketing:
- Multinational companies with a global workforce
A few additional situations that may require mass payments include:
Global companies with hundreds of employees working around the world can use mass payments to send funds to any worker in their preferred currency. Automating the payroll process and automating salary disbursements also eliminates the need for paper checks and reduces administrative costs.
Vendor and supplier payments
Brands that work with multiple vendors can use a mass pay system to consolidate payments for goods and services. This helps ensure accuracy, improves organization, enhances supplier relationships, and improves cash flow management.
Companies that participate in affiliate marketing likely need to pay commissions and affiliate payments to several parties. Mass payouts allow for quick and accurate payments, encouraging affiliates to promote the brand as agreed upon.