# Automate Fund Distribution with Split Settlement

**Split Settlement**, a feature that automates the distribution of funds from a single transaction to multiple recipients.


## <span style="color:#7b2cbf">What is Split Settlement?</span>

Split Settlement allows merchants to automatically distribute a single payment to multiple recipients based on predefined rules.
These rules can be set as **fixed amounts** or **percentages**, ensuring each party receives their share without requiring separate transactions.


## <span style="color:#7b2cbf">Benefits of Split Settlement</span>

<Icon icon="ph-bold-timer"color="#7b2cbf"/><span style="color:#7b2cbf">Time Savings:</span> Automates fund distribution, reducing manual work.
<Icon icon="ph-bold-target"color="#7b2cbf"/> <span style="color:#7b2cbf">Accuracy:</span> Ensures precise allocation as per split rules, minimizing errors.
<Icon icon="solar-bold-graph-up"color="#7b2cbf"/> <span style="color:#7b2cbf">Scalability:</span> Easily handles growing transaction volumes without added complexity.
<Icon icon="ph-bold-user-check"color="#7b2cbf"/> <span style="color:#7b2cbf">User Experience:</span> Provides a seamless experience for customers, who make only one payment.

## <span style="color:#7b2cbf">Who Can Use Split Settlement?</span>

Split Settlement is ideal for **platforms and marketplaces** that need to distribute payments among sellers, partners, or themselves.
Examples include:

* **E-commerce platforms:** Disbursing payments to multiple vendors.
* **Freelancing platforms:** Paying freelancers while retaining a service fee.
* **SaaS platforms:** Sharing revenue with partners.

By automating splits, businesses reduce manual fund transfers, cut administrative overhead, and ensure faster, more reliable payouts.

## <span style="color:#7b2cbf">Use Case: Freelancing Platform</span>

Imagine a freelancing platform where clients hire developers for projects. After a client pays for a completed project, the platform needs to pay the developer and keep a commission.

**Without Split Settlement:**

1. The platform receives the full payment.
2. It manually calculates the developer’s share and its commission.
3. It initiates separate payouts, a process that’s time-consuming and prone to errors.

**With Split Settlement:**

1. The platform sets up accounts for developers and itself on EnKash.
2. It defines a split rule, e.g., **90% to the developer, 10% to the platform**.
3. When the client pays **INR 1,000**, EnKash automatically splits and settles the payment, sending **INR 900** to the developer and **INR 100** to the platform instantly and accurately.

## <span style="color:#7b2cbf">How Split Settlement Works</span>

<Steps>
  <Step title="Account Setup">
    The merchant (platform) sets up accounts for all recipients, each identified by a unique Split Account ID.
  </Step>
  <Step title="Define Split Rules">
    The merchant configures how the payment should be divided:
    - **Fixed amounts:** e.g., INR 500 to the developer, INR 500 to the platform for a INR 1,000 payment.
    - **Percentages:** e.g., 90% to the developer and 10% to the platform.
  </Step>
  <Step title="Payment Creation">
    When the customer makes a payment, the merchant includes the split details in the payment request.
  </Step>
  <Step title="Fund Distribution">
    EnKash processes the payment and distributes funds to each recipient’s account according to the split rules — completing the settlements in a single transaction.
  </Step>
</Steps>

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