Virtual Collection Tools

Virtual account collection tools are designed to help make payment reconciliation easier. Similar to wallets, collection tools come with their own account number, IFSC, and VPA handle. However, unlike wallets, collection tools do not have their own balance and cannot be used to make transfers.

Collection tools can only be used to receive payments. Money received by a collection tool does not remain in the collection tool. It is immediately transferred to your ZWITCH primary account or settlement account.

Use Case 1

You are a non-banking financial company (NBFC). You disburse loans to your customers. Customers repay the loan as EMIs. Traditionally, you would share your current account details with your customers, who would make payments to the account. Receiving EMI payments from all your customers in one account makes it hard for you to keep tabs on who made their payments on time and who defaulted on their payments. Payment reconciliation is a hassle too.

With collection tools, you can create a collection tool for each customer and share details of the collection tool with your customers. Customers can make payments to the collection tool. This makes payment reconciliation easier for you. All money received by the collection tool is transferred to your ZWITCH primary account, ensuring you have funds available for your operations.

Use Case 2

You are a business that supplies goods and services to multiple customers. Traditionally, you would share your current account details with your customers, who would make payments to the account. Receiving payments from multiple customers in one account makes it hard for you to keep tabs on who made their payments on time and who defaulted on their payments. Payment reconciliation is a hassle too.

With collection tools, you can create collection tools and share the collection tool account details with your customers. Customers can make payments to the collection tool. This makes payment reconciliation easier for you. All money received by the collection tool is transferred to your ZWITCH primary account, ensuring you have funds available for your operations.

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Note:

Refer to our Wallets vs. Collection Tool documentation to understand the difference between a collection wallet and a collection tool.