A progressive digital ecosystem has given birth to the Payment System Services Infrastructure, one of which focuses on providing convenience in the transaction process. This innovation answers the community's need for a payment system that is fast, easy, cheap, and secure in conducting business activities.
The real time technology that is commonly used is the API Disbursement, this technology is connected to financial institutions and integrated with various payment instruments and access, making the exchange process simpler, more automated and optimized.
Maybe some of you are not fully familiar with the API disbursement, therefore we will provide a discussion about this particular technology further.
What is API Disbursement?
According to the Cambridge Dictionary, disbursement is defined as "an amount of money given for a particular purpose".
Bank Indonesia Regulation Number 23/6/PBI/2021 concerning Payment Service Providers also mentions disbursement as forwarding funds. So in financial terms, disbursement is generally understood as a payment transfer.
Meanwhile, API is an acronym for Application Programming Interface. Where this system works by integrating various services to answer the needs whenever there is a confirmed inquiry.
So when combined, the API disbursement is a system that simplifies the payment process easily and quickly.
Types of Disbursement Components
1. Cash Disbursement
Cash Disbursement if translated implies the meaning of Cash Payments, or simply payments that are made at the time when the transaction happens.
2. Cash Disbursement Journal
Cash Disbursement Journal is a medium for recording cash payment flows issued by the company. The media can be in the form of notebooks, service provider applications, or through financial software.
3. Cash Receipt Journal
The Cash Receipt Journal is inversely related to the Cash Disbursement Journal. If the Cash Disbursement Journal records cash disbursements, the Cash Receipt Journal records business cash entry transactions (inflow) into the journal media.
Types of Disbursement Through APIs in Indonesia
Real Time Online
Real Time Online, as it’s called, provides transaction speed with "Real Time" settlement time regardless of working hours, transactions can be received right away by the recipient. Due to its real-time nature, Bank Indonesia has imposed a limit up to 25 to 50 mil IDR for this transaction type.
National Clearing System
SKN or commonly known as Lalu Lintas Giro (LLG) where transactions rely on the same bank intra-network following the schedule of Bank Indonesia, 08.00 – 15.00 on weekdays. If the transaction is carried out by different institutions, it will take longer time, and if the transaction takes place outside business hours it will be processed on the next working day.
Real Time Gross Settlement
According to BI, Real Time Gross Settlement is an infrastructure used as a means of electronic fund transfer, where settlement is carried out instantly per individual transaction. One of the prominent features of RTGS is “Liquidity Saving Management” (NGO) which aims to improve risk management and efficiency in liquidity management.
Cash Disbursement
This type of API disbursement facilitates merchants to make automatic withdrawals of funds for urgent needs in the form of cash, by utilizing a network of participating outlets. This retail outlet network is usually in the form of government services retail outlets, such as post offices and pawnshops, or minimarket outlets networks spread throughout Indonesia.
E-wallet
E-wallet which stands for electronic wallet is an electronic wallet that is widely used by the public for various transactions such as payments to merchants, online shopping, bill payments and many more. API disbursement can also be used to transfer to e-wallets.
Host to Host
Host to Host (H2H) payment system is a digital payment transformation that is directly connected between servers and connected to your business partners. Host to Host Payment works automatically in various company activities to make payments without intermediaries or being burdened by time-consuming documents. An example of this transfer system is applied to intra-bank, or intra-institutional transfers. A third party can request connection to this host to host network with approval from the related network owner.
BI-Fast
BI-FAST is a national retail Payment System infrastructure developed by Bank Indonesia, where this system can facilitate retail payments in real-time, safe, efficient, inexpensive and available nature at any time. The amount of the transaction fee from the Bank to the Customer is set at a maximum of IDR 2,500 per transaction, cheaper than the general transfer which is set at IDR 6,500 per transaction. BI-FAST payments can currently be used through tellers, mobile or internet banking, and in the future will also apply to transactions using QR, ATM, and EDC. Currently, BI-Fast has been adopted by a network of 50+ major banks in Indonesia, such as BCA, BRI, Mandiri, Permata, and many others.
Remittance
Remittance is the forwarding of funds carried out within and outside the country. According to the OJK, remittance is a secure money transfer service that is carried out from within the country to recipients abroad (Outward Remittance) or vice versa from abroad to within the country (Inward Remittance), where the distribution can be in the form of transfers to bank accounts or taken in cash by the recipient.
Implementation and Use of the API Disbursement
API disbursement has been widely adapted to facilitate money distribution flow, products and service trade, finance reporting and bookkeeping, as well as other financial activities.
Currently, many modern enterprise financial management systems have connected their ERP (enterprise resource planning) systems or financial software applications with the API disbursement to offer the convenience of managing finances through a single platform. The implementation and use of this technology can be used in:
Employee Salary Payment
This routine company activity has its own complexity, it is impossible to input hundreds or even thousands of employee account numbers one by one to send their monthly and weekly wage payments. So that a system is needed to facilitate this continuity.
Refund or withdrawal system
The Disbursement API with a real time mechanism provides convenience in processing transactions quickly, so the benefit is that refunds that must be transferred can be done and received right away.
Vendor payments and supplier invoices
The activity of buying and selling products and services cannot be separated from the need for vendors to support the smooth running of your business. If the vendor's bank account and yours are different, it won’t be a problem with the API Disbursement system integrated in the device, even for transactions in bulk.
Charging e-Wallet
Electronic wallet applications that can be accessed via smartphones take advantage of the convenience offered by this system, the value being practiced is fast, easy and practical transactions. API disbursement is commonly used to transfer to e-wallets for top up purposes.
API Disbursement also provides value in the form of guaranteeing consumer protection, expanding access, and implementing sound and reliable business practices while still paying attention to the safety of the digital economic and financial environment.
As discussed earlier, many enterprise management systems are connected to API disbursement service to provide a more comprehensive financial management experience.
The average company has several accounts in different banks for different purposes. These accounts are monitored and must be adjusted to the company's budget needs in real time. In response to this, Aspire offers an all-in-one financial platform that can connect your cash flow with the company's budget in real time. Sending and receiving payments are connected via API to facilitate transfers and updates in real time.
For companies that have already had their own ERP system, Aspire, in collaboration with Duitku, also provides a separate payment gateway service that can be connected directly either through API or through plugins to receive and send funds in Indonesia.
By using the Aspire all-in-one Finance, the flow of company expenses or income will be automatically recorded in detail in real time, and is directly connected to the company's budget and bookkeeping. Expense management and Receivables management can be done through 1 platform without having to switch softwares. Simplify your operational financial management with Aspire and streamline your finance operation.
Keep aspiring with Aspire
Frequently Asked Questions
How can Aspire support the unique financial needs and challenges of mid-sized businesses?
Aspire offers a comprehensive suite of expense management solutions tailored for mid-market companies. This includes sophisticated corporate cards, advanced budget controls, and streamlined claims and approval policies, all designed to enhance financial efficiency.
How quickly can a mid-market company integrate Aspire's solutions into existing systems and workflows?
Integration with Aspire's expense management solutions is swift and seamless. Mid-market companies can swiftly implement corporate cards with tailored features, set up nuanced budgets, and establish streamlined claims and approval processes, ensuring minimal disruption to existing workflows.
How does Aspire compare to competitors for international money transfers?
Aspire excels in international expense management with FX fees up to 2x cheaper than traditional banks.
Global payments are offered by various providers through business accounts. Read our article to know more about types of business accounts and how to choose the best one for your business. There are many banks and fintech companies offering business accounts to businesses in Singapore. We have covered them all in our blog, you can click the links to view accounts offered by various banks such as DBS, OCBC, Maybank etc.
However, if you are a start-up or a growing business, chances are you may not meet the eligibility criteria for most of these banks or find their charges to be expensive for your liking. You can consider opting for Aspire multi-currency account for global payments which offers you all the benefits, with eligibility criteria which are less stringent. Read our article on bank charges in Singapore for a quick and easy comparison.
What level of customization does Aspire offer to meet the specific financial requirements of mid-market clients?
Aspire understands the diverse financial needs of mid-market clients and provides a high level of customization to tailor solutions accordingly. This includes the ability to customize corporate cards with specific spending limits, rewards, and benefits that align with the unique requirements of each client.
Additionally, Aspire's budgeting features are adaptable to accommodate the distinct financial structures of mid-market enterprises. The platform also allows for fine-tuning approval policies, ensuring they align with the specific workflows and compliance standards of individual mid-market businesses. This commitment to customization empowers mid-market clients to optimize their expense management in a way that best suits their financial goals and operational preferences.
Is there a minimum balance required for Aspire Business Accounts?
No minimum balance is required to keep your SGD, USD, EUR, GBP and IDR Accounts activated.
Can Aspire's corporate cards be customized to cater to the specific needs of consulting teams on the go?
Yes, Aspire's corporate cards are highly customizable. Consulting teams can benefit from tailored spending limits, travel-centric perks, and real-time transaction tracking, ensuring that the cards meet the unique requirements of professionals on the move.
How does Aspire support budget management for consulting projects and travel expenses?
Aspire's platform offers sophisticated budget controls that consulting companies can adapt to project-specific needs. This includes setting project budgets, tracking expenditures, and receiving real-time insights to ensure that expenses align with project goals.
What are Aspire Corporate Card FX rates?
At Aspire, we want you to pay the lowest rates in the market.
- Zero card activation fees
- Zero card transaction fees
- Best FX rates, up to 2x cheaper than banks
How does Aspire help consulting companies enforce expense policies and approvals for travel expenses?
Aspire streamlines the claims and approval process, allowing consulting companies to establish and enforce expense policies seamlessly. Customizable approval workflows ensure compliance with company policies and industry regulations.
Is Aspire's platform scalable for consulting companies of varying sizes?
Yes, Aspire's platform is scalable and caters to consulting companies of all sizes. Whether you're a boutique consultancy or a larger firm, the platform's features can be adapted to meet your specific travel and expense management needs.
How can I open a business account in Singapore?
For a business account in Singapore, Aspire is an excellent choice. With a focus on startup and SME needs, Aspire offers a seamless and transparent banking experience.
Benefit from their user-friendly online platform, no minimum balance or account opening fees, and dedicated support for businesses of all sizes.
Aspire is designed to streamline your financial management, making it an ideal partner for entrepreneurs in Singapore.
How long does it take to open an Aspire business account?
Registration with Aspire takes less than 10 minutes which you can do via our website or mobile app.
Once registered, we will get back to you within 5 business days on whether your account has been activated or if we need further documents from you.
Our account verification process varies according to the nature of your business. In exceptional cases, it can take up to 7 days to process your documents.
How can Aspire's corporate cards benefit my startup?
Aspire's corporate cards offer a range of benefits for your startup. Earn 1% unlimited cashback on qualified spends, simplify expense management, enjoy streamlined transactions, and gain real-time insights into spending. With customizable limits, integration with accounting software, and enhanced security features, Aspire's corporate cards are designed to empower your startup's financial efficiency and provide added convenience for your team.
Is Aspire suitable for both early-stage and established startups?
Absolutely, Aspire caters to the needs of both early-stage and established startups. Whether you're just beginning your entrepreneurial journey or have an established business, Aspire offers tailored financial solutions to help streamline your operations.
From managing expenses and optimizing workflows to providing valuable financial insights, Aspire's platform is designed to adapt and scale with your business as it grows. The flexibility and scalability of Aspire make it a suitable choice for startups at various stages of development.
Is there a minimum balance required for Aspire Business Accounts?
No minimum balance is required to keep your SGD, USD and IDR* Accounts activated.
However, we recommend keeping your subscription plan amount available on your balance to ensure you're up to date with your payment every month.*
To create a recipient or make any transaction on your IDR Account, you'll need to have a minimum balance of IDR 10,000 on your account.
.webp)
