Cashfree Payments launches automated escrow management solution

The new service facilitates secure and instant disbursal with auto reconciliation, as well as a dashboard for managing multiple partnerships and collaborations at the same time. Furthermore, it does not require any type of manual intervention, and it notifies the loan management system automatically while eliminating reconciliation efforts. 

`Co-lend` was developed according to the digital leading guidelines provided by the Reserve Bank of India (RBI). 

In the collaborations made through co-leading, both the lender and the originator will have the possibility to pool the desired sum into the Co-lend escrow. The disbursals and collections will further happen from and into the escrow. The new features of Cashfree Payments aim to address all the challenges and risks that might appear in this process, such as the errors and delays that might happen because of the repayments and disbursements handled manually, or even the ones caused by accounting and reconciliation for each player in the partnership. 

`Co-lend` provides its customers with an entire automated process, while focusing on its efficiency and accuracy. The clients are allowed to use the platform for co-lending originators and lenders, especially the ones that are sanctioning in high volumes of loans, cases where real-time repayments, disbursements, and reconciliation are required. 

The launch focuses on offering NBFCs, banks, and other financial institutions a simple service for escrow management, repayment, and disbursal, as well as concentrating on automating payments and complex reconciliation improvement.

Cashfree’s development strategy 

Cashfree provides multiple payment solutions and services to businesses and organisations to collect payments and make payouts using all the available methods with a simple and secure integration strategy. Included in the suite of products provided by the company are a simple way to integrate payment gateways, a split solution for marketplaces, as well as ending disbursals solutions, bank account verification API, and Auto Collect, the service that provides customers with a virtual account to match their inbound payments. 

The company announced multiple collaborations and product launches in the last couple of months. 

In December of 2022, Cashfree Payments launched its Buy Now, Pay Later (BNPL) suite to offer flexible financing options. Following this announcement, online businesses were able to provide their customers with more than 30 flexible financing options at the checkout by leveraging Cashfree Payments’ BNPL suite. The company launched the offering before the holiday season. This gave businesses and organisations the possibility of offering easy and instant access to credit to their clients, resulting in increased sales. 

Earlier in the same month, Cashfree enabled eUPP, a payment management system for schools and colleges, to offer instant and secure payments for end users. Following this partnership, all the institutions on eUPP’s platform can now seamlessly track their payment collections directly via the eUPP application. This helped eUPP boost their transaction rates and enabled their customers to improve their service quality by offering greater transparency and functionality around payments on their already existing platform while ending customer touchpoints.