Businesses use Instamojo to collect payments (among other things). The money collected via Instamojo takes T+3 days (3 business days) to reach their bank accounts (a Payout).
This delay creates two problems:
Here's what we learned from our customers:
Manik Singla , the product manager, brought these insights to attention and proposed two solutions:
With our T+3 cycle, we send one Payout every working day (if the Payout is due) the money is wired using NEFT.
Next Day Payout was to work only on working days, so it was just a matter of flipping a switch:
Instant Payout works 24x7, the money is wired using IMPS. To be "Instant" every payment would need to be paid out instantly. That's fine if you get 10 payments a day, but it could easily turn into a notification nightmare if you were receiving 1000 a minute.
It made sense to batch-process transactions, but we ran into another problem—IMPS has a limit of INR 2,00,000 per transaction.
We decided to make Instant Payout a choice (voluntary experience).
This approach had other benefits:
We distributed over 1NR 100 million of credit via Next Day Payout and Instant Payout in just 60 days of launch.
Next Day & Instant Payout is especially popular among customers using Instamojo using a mobile device.
"Instant Payout is icing on the top"— A baker using Instamojo to online orders for his bakery
Our customers love Next Day & Instant Payout for solving their cash flow problems. Instant Payout, however, gets more love—because it's addictive.
Habit loop describe behaviour-building circuit of the brain. You can read more here; in breif:
At Instamojo, we always wanted to build a habit loop, but thanks to the T+3 cycle, the loop never worked:
Instant Payout fixed that:
Customers love pressing the button and hearing their phone ring with a notification from their banks—your account has been credited!
Read more about building of Next Day & Instant Payout here: