On-Platform Transactions

On-platform transactions refer to those that are conducted and settled within the ecosystem of the platform itself. In the case of Bharat Connect:

Transaction Flow: All parties involved—whether they are invoicing, making payments, or receiving payments—are registered users of the Bharat Connect system. This means both the sender and receiver of funds utilize the platform's tools and accounts to execute the transaction.
Settlements: Settlements in on-platform transactions are typically streamlined and quick. Since all transactions occur within the same ecosystem, the platform can efficiently manage and reconcile payments between accounts without interacting with external banking systems for each transaction. Funds are transferred internally, and the records are updated in real time or within the settlement cycle predefined by the platform.

Step-by-Step Process

Transaction Initiation:
- A user (payer) initiates a payment on the Bharat Connect platform. This payment is made against the B2B ID of the seller. The B2B ID is a unique identifier that links the transaction to the seller's account on the platform.
Escrow Account Transfer:
- Once the payment is initiated, the funds are first transferred to an escrow account. This escrow account is managed by the Operating Unit (OU) associated with the payer's Agent Institution (AI). The use of an escrow account ensures that the funds are secure and that all conditions of the transaction can be met before the money is released to the seller.
Inter-OU Transfer:
- After the funds are secured in the escrow account, they are then transferred to the OU associated with the seller’s AI. This transfer involves moving the funds from one OU to another within the Bharat Connect system. This step is crucial as it prepares the funds for final settlement to the seller's account.

Final Settlement to Seller:
- Once the seller’s OU receives the funds, they are then settled into the seller's account. This final step completes the transaction, ensuring that the seller receives the payment for the bill or service provided.

Off-platform transactions occur when the payment initiation or the receipt—happens outside the ecosystem of the platform.

Examples: This could include payments made through external bank transfers, checks, or even cash, which are then recorded in the platform for tracking and reconciliation purposes.