Definition
Instant settlement means transferring money to the merchant’s bank account immediately after a customer makes the payment.
Importance
- Improves cash flow for small businesses.
- Reduces waiting time compared to traditional settlement cycles.
- Helps merchants avoid delays in receiving funds.
Examples
Merchants in retail stores, delivery services, or online platforms benefit when payments settle instantly instead of waiting for hours or days.
Use Case
Food delivery companies use instant settlement so restaurant partners can receive their earnings quickly, ensuring better operations.
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