The challenge

A constant innovator in e-commerce, Delivery Hero was looking to introduce a better experience to its fleet of delivery riders on the Foodpanda platform, by allowing them to receive earnings on-demand via the Foodpanda mobile application. To successfully launch this in Singapore, Delivery Hero looked to develop a process that could enable faster fulfilment and reconciliation of payments.

On Foodpanda, delivery riders’ earnings accumulate with every delivery that they complete. To enable the riders to request their earnings to be disbursed on-demand, Delivery Hero had a vision to fully automate the in-app payments and reconciliation process. Achieving this would eliminate existing manual processes, as these could not be completed fast enough to support on-demand pay outs, and were liable to human error.

The solution

Delivery Hero worked together with HSBC to develop and implement an innovative process that could instantly trigger and reconcile requested payment amounts based on application programming interface (API) connectivity for payments.

Payment requests initiated by the riders on the Foodpanda app are now transmitted to HSBC through API, which are received and processed in seconds. Requested payment amounts are then disbursed via Singapore’s Fast and Secure Transfers (FAST) clearing channel, which credits funds to riders’ accounts in just a matter of minutes. Payment acknowledgements are also sent back via API to Delivery Hero’s systems for near-instant reconciliation. Overall, this accomplished the automated, near-instant payment and reconciliation process Delivery Hero needed to support on-demand payments to riders.

“In a competitive industry, we work with HSBC to co-create digital solutions that differentiates our customer experience, enabling us to build capacity in existing markets, and enter new countries and segments.”

^{Christian Schmahl, Treasury Director, Delivery Hero}

Benefits

• Delivery Hero saved 30 staff hours a month by complete elimination of manual processes achieved through an innovative automated payments and reconciliation solution.
• Riders receive their latest earnings almost-instantly, whenever they want, leading to greater levels of satisfaction amongst the delivery fleet.
• Through the payment API, Delivery Hero now enjoys a 100% straight-through-processing rate on payments to delivery riders.
• Bespoke support and close collaboration between Delivery Hero and HSBC to successfully implement a completely new proposition.

"We are proud to support Delivery Hero’s remarkable growth at group level, and its foodpanda subsidiary in Asia. We help the business to understand the local regulatory and commercial environment, and digitise its payment and collection solutions to drive its q-commerce ambitions.”

^{Winnie Yap, Head of Global Liquidity and Cash Management, HSBC Singapore}

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