Virtual Account used as a Collection Wallets

Functionally, collection wallets are similar to physical accounts. They come with an account number, IFSC, and VPA handle and can only be used to receive payments. To withdraw money from the virtual account used as a collection wallet, you must verify your beneficiary's bank account.

After the account is activated, you can allow the account holder to perform the following actions using our APIs:

• Create a UPI collect request.
• Add a bank account beneficiary. (You can only add a verified beneficiary bank account as a beneficiary to the virtual account used as a collection wallet.)
• Transfer money to the beneficiary.
• Get account balance.
• Get account statement.

Use Case 1

As a marketplace, you allow sellers to sell their goods and services to users. You also want to let small-scale sellers and individuals sell on your marketplace. These sellers might not have current accounts to get paid from you. In such scenarios, you can create virtual accounts used as collection wallets for the sellers to receive payments for their goods and services rendered.

When someone buys something, they pay you instead of the seller. After the goods or services are delivered to the user, you transfer the money to the seller's collection wallet. You can create separate virtual accounts used as collection wallets for individual sellers. So that you can track and reconcile payments made to your seller's account. Sellers can withdraw money received as payments to their bank account as and when required.

Making buyers pay you instead of the seller makes it easier for you to give refunds and lowers the chances of fraud.

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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.