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The challenge

IDP India is growing at a CAGR of 30%. As a result of a recent acquisition, the treasury team expects collections to double. Collections are largely from IELTS candidates paying test fees either directly or through referral partners. In the past, these collections spanned various modes, which include cash collections at branches. Online collections varied across different branches as well as different electronic payment types including credit/debit cards, bank transfers and e-wallets.

Although IDP India offered a variety of payment options to its customers on its website, the separate integrations with different payment gateway providers resulted in long implementation timelines and high costs. To manage the growth expected from the acquisition, the treasury team was looking for a solution that would keep pace with the dynamic collections landscape in India.

Specifically, they wanted a single integrated solution that could consolidate and streamline collections from various modes for faster turnaround times and reconciliation for better working capital management. IDP India also wanted to improve the user experience of students and referral partners while incentivising students to opt for online payments. The solution needed to be easily scalable for future-proofing purposes so it could be replicated across geographies.

The solution

IDP India implemented HSBC’s Omni Collect, a one-stop solution that allows them to give students multiple payment options while also giving the treasury team a comprehensive view of their collections across different channels. This includes bank transfers (NEFT, IMPS), card payments, UPI, e-wallet transactions, and international payments. A single application programming interface (API) connection to their key bank supports online collections across multiple service providers. Receipts are consolidated into one centralised account, reducing expenses related to digital upgrades/multiple integrations with different payment gateway service providers and enhancing the end-user experience.

As a first step, the Omni Collect solution will replace the existing payment gateway services for online collections. IDP India worked closely with the bank to develop a customised solution that covers all aspects of the company’s online collection requirements while improving operational efficiencies and reducing costs.

Based on the success of the online collections, IDP India is implementing the solution to its 41 student placement branches and 23 computer-delivered IELTS set-up centres through which IDP has a physical presence.

So far, the solution addresses India, Malaysia, Vietnam, Singapore, Indonesia, Cambodia, Philippines, Sri Lanka, Mauritius, Oman and Turkey.

Best practice and innovation

IDP India is among the few companies in India to implement an Omni Collect API integrated solution in their industry. With this innovation, the company saw a complete transformation in its treasury and cash management practices. Previously, collections were flowing into multiple accounts at different banks to accommodate separate integrations and payment gateway set-ups.

The structure has been streamlined and simplified. The number of collection banks has been reduced to three. IDP India now has access to detailed information across various modes of online collections, giving it better visibility and control for more accurate cash flow forecasting and effective decision making.

Key benefits

• Single interface.
• Various mobile collection channels supported.
• Variety of payment options.
• Improved student experience.
• More effective treasury operation.
• Real-time connectivity.
• Improved reconciliation.
• Increased interest earnings of >US$200,000 per annum.
• Targeting to reduce cash volume by 30%, which will lead to overall cost saving of US$175,000 annually.