Withdrawal is an important feature in various financial applications, especially in today’s digital age. This feature allows users to quickly and easily transfer funds from financial platforms to bank accounts or other payment services.
This convenience is made possible by technology that automatically connects systems to ensure efficient withdrawal processes. This article explains in more detail what withdrawals mean, what types of withdrawals there are and how API (Application Programming Interface) technology supports this function.
What is a withdrawal process?
Withdrawal is the process of transferring money from a user’s financial account to another available payment method, such as a bank account, digital wallet, or cash payment. Essentially, withdrawal means transferring money from a balance in a financial account—be it a bank account or a financial app—to another payment service.
The steps to make a withdrawal vary depending on the platform's policies. Generally, users can select the “Withdraw” or “Withdraw money” option in the financial application they are using. They can then enter the withdrawal amount and specify the withdrawal location.
When a user initiates a withdrawal, the amount withdrawn will reduce the balance on their financial account. Some platforms may charge administration fees and minimum or maximum withdrawal amounts. The processing times for withdrawals may also vary depending on the financial platform's policies.
Examples of withdrawals
For a better understanding of withdrawals, here are some examples:
- Withdrawing cash from an ATM via a personal bank account.
- Transferring money from one bank account to another.
- Withdrawing funds from a digital wallet (e-wallet) to a bank account.
- Transferring funds from one e-wallet to another, such as from GoPay to ShopeePay.
- Withdrawal of earnings from marketplaces or freelance platforms, such as Shopee Seller or Upwork, to a bank account.
Types of withdrawals
Although withdrawals are usually associated with digital platforms, it is still possible to withdraw funds physically or in cash. In general, withdrawals are divided into two categories: Cash withdrawals and non-cash withdrawals. Here you will find an explanation of both:
1. Cash withdrawals
Cash withdrawals involve withdrawing funds from a user’s financial account and converting them into physical cash. Also known as "cash withdrawal" or "cash payout"," users can withdraw cash from their bank accounts or electronic wallets and use the money immediately.
Cash withdrawals are usually made at ATMs, where users insert their ATM card or enter a code from their mobile banking app to withdraw money. For electronic wallets, cash withdrawals can be made at merchants that offer such services. For larger cash withdrawals, users can visit bank branches.
The advantage of cash withdrawals is immediate access to cash, especially in places where cashless payments are not accepted. However, carrying large amounts of cash requires additional security precautions.
2. Cashless withdrawals
Cashless withdrawals involve transferring funds from one financial account to another without physical cash being present. Essentially, only the account balances change without any physical money being moved.
A common example of cashless withdrawals is the transfer of funds from one bank account to another. With the advancement of financial technology (fintech), users can also transfer funds between e-wallets or from an e-wallet to a bank account and vice versa. Many users even top up their e-wallets and use the credit to make purchases.
Cashless withdrawals are a popular choice for transactions due to their flexibility, practicality and security. However, these transactions may incur additional administration fees.
Cashless withdrawals also apply to fintech applications for investing and trading, which are becoming increasingly popular in Indonesia. Investors or traders using these applications can apply withdrawal strategies by transferring profits from the sale of assets (such as shares) directly to their wallets within the application. They can then transfer the profits to their bank account or e-wallet, or reinvest them as capital to buy more assets.
API technology in the integration of withdrawals
You may be wondering how withdrawals from one account to another can be done so quickly and seamlessly. This convenience is made possible by API technology, which integrates withdrawal functions into financial applications by automatically connecting different systems and services.
API is a programming language that enables two applications to communicate with each other. In the context of withdrawals, API technology connects the server of the user application with the corresponding financial service provider or payment company.
The specific API technology used for withdrawals is called Payout API, also known as Disbursement API. This is how these APIs work in the withdrawal process:
- User initiates withdrawal: The user requests a withdrawal by entering data such as the withdrawal amount and the payment term.
- Verification of the data: The server processes the data and sends it to API Payout for automatic verification.
- Verification and instruction: API Payout automatically verifies the data and issues payment instructions to the relevant financial service provider.
- Notification: As soon as the payment is successful, the server notifies the user in real time.
Aspire’s Payout API for fast and secure transactions
API Payout technology not only simplifies the withdrawal process, but also supports automated payments, even on a large scale. This is particularly important for businesses that need technology to save time and resources so they can focus on their core activities.
If you’re looking for a service that can streamline your business payment processes, Aspire’s Payout API is the solution. With Aspire’s Payout API, you can make payments to over 140 banks in Indonesia at any time and in real time. This allows you to process bulk payments for salaries, suppliers or vendors simultaneously.
Automation allows you to reduce manual errors and save valuable time. To improve monitoring, you also receive real-time notifications on the status of transfers.
In addition to API Payout, Aspire offers other outstanding services including business accounts, payment gateway and corporate cards. Want to find out more? Get in touch with us today!
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.
%20untuk%20kemudahan%20transaksi%20bisnis.png){kind=spacer}
