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June 2020: T+4 – Payout process improvement

“T+4” – Payout process improvement release 1st of June 2020 

On 1st of June 2020 Payyo released “T+4”. Please find here a short explanation about the change in payout process. 

How was it before 1st of June?

At the end of 2018 Payyo changed all German merchants to Stripe Connect. The payout cycles (weekly and monthly) were always aligned with Payyo and did not change. The only difference was that through Stripe Connect the transactions were available to be paid out after seven days. This rule is called “T+7”. 

What was the challenge?

Payyo had two payout instruments with different payout rules. Through Payyo the payouts were immediately released with “T+0”, through Stripe Connect with the “T+7” rule. No doubt that this ends up in confusion for our partners as well as in a challenge for the internal accounting. With T+0, alternative payments can be a risk as their settlement takes between two to seven days longer than normal transactions. 

The solution “T+4”

Recent negotiations with Stripe Connect have resulted in a shortening of the availability of the payout. With the new contract, we are now able to implement “T+4”. Instead of seven days, the transactions are paid out after only four days. In order to have all merchants aligned and avoid further accounting inconvenience, we have changed all merchants to the rule “T+4” by 1st of June 2020. 

How does this affect the merchants?  

From experience, Payyo can tell that in terms of payouts, trust, and reliability of receiving them regularly is most important. The change to T+4 still enables monthly and weekly payouts and will still provide the merchant this reliability. 

Visualization_weekly_and_monthly_payouts_T+4

In case of any questions or concerns please don’t hesitate to contact us support@payyo.ch 

Updated on February 17, 2021

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