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Challenges after Release
With virtual accounts in place, we encountered new challenges that needed to be addressed.
Employers managing multiple businesses could only have one virtual account per business, linked to a maximum of two remittal accounts.
This became a constraint for high-value salary disbursements, as larger transactions incurred higher taxes.
To maintain compliance while providing flexibility, many employers sought the ability to disburse salaries from multiple accounts. Given the importance of these users to our business, we needed a solution that balanced regulatory requirements with user needs.
Solving Challenges
01
Payment Method Discovery
To make users aware about the new payment method, we implemented contextual pop-ups on the bulk payment page, ensuring seamless discovery and adoption
Bulk Payment
Jan: ₹ 1,200
Feb: ₹ 1,200
Continue
How to Add Money
Total Staff: 15
|
Total Amount: ₹ 50
Virtual Account Balance: ₹ 1,200
Refresh Virtual Account Balance
Cycle
Multiple
Clearing Cycle
Jan ‘23
Pending Cycle
02 Months(Jan’23 - Feb ‘23)
Mode
Online
Payment Method
2 day Settlement
Group by
Staff Type
Department
Product
Shifts
Morning
Staff type
Weekly
Edit
Search for Name, ID
Employee Name
John Brown
Jim Green
Joe Black
Edward King
Amy Jackson
John Philips
Joshua Sridhar
King Black
King Black
King Black
Employee ID
PGBK02322
PGBK02322
PGBK02322
PGBK02322
PGBK02322
PGBK02322
PGBK02322
PGBK02322
PGBK02322
PGBK02322
Carry Forward
₹ 1,200
₹ 1,200
₹ 1,200
₹ 1,200
₹ 1,200
₹ 1,200
₹ 1,200
₹ 1,200
₹ 1,200
₹ 1,200
Due
₹ 1,200
₹ 1,200
₹ 1,200
₹ 1,200
₹ 1,200
₹ 1,200
₹ 1,200
₹ 1,200
₹ 1,200
₹ 1,200
Amount to be paid
₹ 1,200
₹ 1,200
₹ 1,200
₹ 1,200
₹ 1,200
₹ 1,200
₹ 1,200
₹ 1,200
₹ 1,200
₹ 1,200
New Payment Method Available!
You are currently on a two day payment settlement method. You may opt for Instant Settlement through Virtual Accounts for instant payments to your staff at no additional cost, with support for a larger number of banks.
I’ll Do it Later
Try Now
02
Smooth onboarding
The primary objective of this page is to educate users about the available payment options and their details. By providing a clear overview of the instant payment process upfront, we ensure transparency, reducing the likelihood of users dropping off midway through onboarding
Back to Settings
Payment Methods
Choose from our two options: Two-Day Settlement, or Instant Payment via a Virtual Account
Selected Option
Two-Day Settlement
Payments initiated through PagarBook will be credited to the staff's bank accounts within two working days from the date of payment initiation.
Other Available Option
VA: Instant Payment via Virtual Account
Payments initiated through PagarBook using Virtual Accounts will be settled immediately into your staff's bank accounts
What is Two-Day Settlement?
01
Schedule Payments in 2 days Advance
We encourage you to schedule your salary payments two working days before your staff expect salaries in their bank accounts.
02
Bank Holidays
Please note that settlements do not occur on bank holidays or weekends.
View Holiday List
What is VA: Instant Payment ?
01
Request a Virtual Account
Your account should be ready within minutes.
02
Add the Virtual Account as a Beneficiary
Link this account to one
(or a maximum of two) of your business bank accounts. This account will be used to deduct the salary amount for your staff.
03
Fund Your Virtual Account
Link this account to one
(or a maximum of two) of your business bank accounts. This account will be used to deduct the salary amount for your staff.
04
Ensure Sufficient Funds
If the balance in your virtual account is less than the required salary amount during an Online Payment, you will need to top up your account using the same method as in step 3.
For any inquiries, please contact us at:
contact@pagarbook.com.
+91234567890
Create Virtual Account
Other Iteration
Rejected because information of payment options was only visible on click, which limited visibility and discoverability. This not only made it harder for users to compare options at a glance but also posed scalability challenges as more payment methods were introduced.
Back to Settings
Selected Option
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Two-Day Settlement
Payments initiated through PagarBook will be credited to the staff's bank accounts within two working days from the date of payment initiation.
Other Options
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VA: Instant Payment via Virtual Accounts
Payments initiated through PagarBook using Virtual Accounts will be settled immediately into your staff's bank accounts
01
Request a Virtual Account
Your account should be ready within minutes
02
Add the Virtual Account as
a Beneficiary
Link this account to one
(or a maximum of two) of your business bank accounts. These accounts will be used to deduct the salary amount for your staff
03
Fund Your Virtual Account
Use your bank’s net banking page or mobile app to add funds to the linked business bank account. The balance in your virtual account will reflect the funds added, which are managed outside of PagarBook
04
Ensure Sufficient Funds
If the balance in your virtual account is less than the required salary amount during an Online Payment, you will need to top up your account using the same method as in step 3
For any inquiries, please contact us at:
+91234567890
FAQs
Continue
02
Adding Remittal Accounts
This page is designed to educate users about the virtual accounts details while ensuring clarity on the requirement of adding at least one remittal account for further process.
Back to Payment Selection
Virtual Account
Your Virtual Account has been created please add Remittal account to continue
Your Virtual Account will accept money via NEFT/RTGS/IMPS through the bank accounts added below. Transactions done through UPI, or through a bank not specified below will be reversed to source."
Virtual Account Number
123456123456789
Balance
₹ 0
IFSC
123456789
Add Remittal Account | add at least one
Account Holder’s Name
Rajesh Verma
Account Number
918095332013
IFSC Code
918095332013
Account Holder Name*
Placeholder Text
IFSC Code*
Placeholder Text
Bank Account Number*
Placeholder Text
Save
Discard
Go Back
Continue
Other Iteration
The initial approach involved using a stepper to guide users through the process. However, since virtual account details were essential for adding the account as a beneficiary—and the information required was minimal—we streamlined the experience into a single page. This not only reduced cognitive load but also made the process feel effortless for the user.
Back to Payment Selection
Select Payment Options
Complete the following steps to access your Virtual Account
Create Virtual Account
2
Add Remittal Account
3
Verify Beneficiary
Step 1
Create Virtual Account
Current Balance
₹ XXXXXXXXXX
Account Number:
XXXXXXXXX
Your virtual account has been created. Please complete the setup to view the virtual account details.
Go Back
Next Step
Process
With Decentro onboarded, our next challenge was ensuring a seamless transition for users. We needed to educate employers about the new payment method while designing an intuitive onboarding experience that encouraged adoption and minimized friction.
Challenges which need to be solved
Adoption & Onboarding:
Encouraging swift adoption of virtual accounts
User Awareness:
Educating existing users about the new payment option
New User Communication:
Ensuring new users clearly understand payment methods from the start.
Solution
To eliminate the two-day settlement and to reduce the transaction fee we explored alternative banking solutions. We identified Decentro, a banking infrastructure provider that allowed us to create virtual accounts instantly
This solution provided the flexibility of instant settlements at cost of 25k per month a significant reduction compared to Razorpay’s ₹10L per month transaction fee.
Understanding the Problem
PagarBook's payroll system initially operated on a T+2 settlement model, where salary transfers took two days to process.
To address this, we integrated Razorpay's instant settlement feature, allowing faster salary disbursements. However, this came at a high cost, as Razorpay charged 1.5x per transaction, leading to an additional ₹10 lakh per month in expenses.
Major Shortcomings with current method
2 Day waiting time
High Transaction cost
Low Success Rate
About
Background
PagarBook is a comprehensive workforce management platform designed to simplify and streamline operations for businesses. A critical feature of the platform allows employers to initiate salary transfers two days prior to the expected payday, ensuring that employees receive their salaries on time.
Problem
This two-day processing posed challenges for employers requiring immediate salary disbursements. Employers needed a faster way to process salary payments.
Solution
To solve this, we introduced Instant settlements. Employers could create virtual accounts linked to their remittance accounts, preload these accounts with funds, and instantly process salary payments to employees.
Business Impact
+20%
New Users
+40%
Adoption
+30%
Revenue
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My Role
I led the design of the Instant Payments feature—from identifying gaps in the existing flow to crafting a seamless user experience. I collaborated with Decentro to align on technical feasibility and designed the complete UI, ensuring fast, intuitive payouts for users.
Virtual Accounts
Focus
Product Design
Team
Ishita Jain
Ved Prakash
Back to Settings
Virtual Account
Access Account Balance, and transactions done to and from your Virtual Account here.
Account Statement
Actions
Account Holder Name
1234567890
Account Number
D95352182235266297
IFSC
IDFB0080101
How to Add money
Account Statement
View the status of your funds coming in and moving out from your virtual account.
Raise a Ticket
09 Dec ‘23 - 25 Dec ‘23
Reference ID
0EB19699AAD44E5CA820BA452D42735D
0EB19699AAD44E5CA820BA452D42735D
0EB19699AAD44E5CA820BA452D42735D
0EB19699AAD44E5CA820BA452D42735D
0EB19699AAD44E5CA820BA452D42735D
0EB19699AAD44E5CA820BA452D42735D
0EB19699AAD44E5CA820BA452D42735D
0EB19699AAD44E5CA820BA452D42735D
0EB19699AAD44E5CA820BA452D42735D
Amount
₹ 10,000
₹ 10,000
₹ 10,000
₹ 10,000
₹ 10,000
₹ 10,000
₹ 10,000
₹ 10,000
₹ 10,000
Date of Payment
24 Mar ‘24 - 02:30 AM
24 Mar ‘24 - 02:30 AM
24 Mar ‘24 - 02:30 AM
24 Mar ‘24 - 02:30 AM
24 Mar ‘24 - 02:30 AM
24 Mar ‘24 - 02:30 AM
24 Mar ‘24 - 02:30 AM
24 Mar ‘24 - 02:30 AM
24 Mar ‘24 - 02:30 AM
10, Dube Building, Old Nagardas Road, A
10, Dube Building, Old Nagardas Road, A
10, Dube Building, Old Nagardas Road, A
10, Dube Building, Old Nagardas Road, A
10, Dube Building, Old Nagardas Road, A
01 Aug 2023
Transaction Type
Debit
Credit
Credit
Credit
Debit
Debit
Debit
Debit
Debit
In Progress
Done
Withdraw Money
Manage Remittal Accounts
View Ticket History
Switch Payment Option
Current Balance
₹ 123456789
Refresh
Account Holder Name
Ram Prakash
Account Number
0000000000000000
IFSC
0000000000
How to Add money
