4.5x
improvement in manpower efficiency for VCC charging
50%
SLA duration for refunds
>200%
disbursement success rate
34%
payment success rate compared to other payment gateways
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Reddoorz is one of Southeast Asia’s largest and fastest-growing, technology-driven hotel management and booking platforms. With over 3,600+ properties across Southeast Asia, RedDoorz’s vision is to enable people to travel more and to provide an affordable, reliable stay in all major cities and destinations.
To maximize its reach to travelers, RedDoorz makes use of several marketing channels, including the following:
- online sales through RedDoorz’ app and website
- listing its properties on third-party channels
- freelance third-party channels who earn commissions by promoting RedDoorz hotel rooms
Though these give good results for the company, the administrative processes that come with these were a strain on RedDoorz’s Finance department’s time and resources.
Challenges
Tedious process of withdrawing revenue from third-party channels
Revenue earned through some third-party channels can only be accessed by charging the virtual credit card (VCC) provided by the third party channels. This charging process is very tedious and has to be repeated for each of the hundreds and thousands of transactions every day, which amounts to billions of IDR each month.
For each transaction, the process involves entering information–VCC card numbers, expiration dates, CVC codes, and amounts–manually into a point-of-sale (POS) machine and waiting for the machine to print out the transaction record. When the transaction is successful, the staff member then has to enter the reference ID manually into the company’s mid-office system for reconciliation purposes.
It was an error-prone and time-consuming process that took up to 5 minutes per transaction. Given the sheer volume of transactions each month, RedDoorz had to devote 9 employees to handle this process alone.
High failure rates when disbursing commissions to third-party channels and sending refunds to customers
RedDoorz needs to transfer commissions to each of its thousands of third-party channels on a bi-weekly basis, and it also needs to disburse funds to customers for refund cases. However, the bank details provided by the third-party channels and customers were often inaccurate, causing a high failure rate.
For commissions, due to the high transaction volume each month, the Finance team could only perform validation on a sampling of the bank accounts for each batch. For customer refunds, the team validated each bank account manually, but this resulted in a long processing time of 2 weeks or even more.
Low conversion rates for e-wallet transactions
RedDoorz faced the challenge of low conversion rates due to customers not completing cumbersome OTP and PIN steps. Disruptions like this cause some customers to drop off, leading to lost revenue opportunities.
Solution
Automated processes make VCC charging a breeze
By integrating with Xendit’s API, RedDoorz is able to perform VCC charging in batches with just a few clicks. The process is now highly automated. The Finance team no longer had to key in information one by one, both for VCC charging and for reconciliation. This cuts down the manual work tremendously and brings the average processing time per transaction down to mere seconds.
Automated validation of all recipient bank accounts
With Xendit’s bank name validator, the Finance team no longer had to worry about manual checking. Now, each bank account can be automatically validated before funds are disbursed, ensuring accurate transfers–all with negligible manual inputs from the team.
Tokenization helps reduce failed payments and increase conversion
Tokenization makes it easier to complete a transaction by cutting down multiple payment steps for customers. After initial authorization, customers can skip keying in their mobile number and OTP for subsequent transactions.
Result
4.5x improvement in manpower efficiency when processing VCC transactions
Instead of devoting 9 employees to VCC processing, RedDoorz now only requires a maximum of 1-2 employees to carry out this process.
>200% increase in disbursement success rate
High disbursement failure rate is now a thing of the past, resulting in smoother and more pleasant relationships with third-party channels, who are getting their commissions on time. The SLA for refunds has also been reduced from 2 weeks to 1 week, resulting in better service to customers.
34% uplift in conversion rate for e-wallet transactions
Compared with other e-wallet transactions, RedDoorz observed a significantly higher conversion rate as a result of tokenization.
| Before Xendit | After Xendit | |
| VCC Charging |
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| Disbursements |
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| E-wallet transactions |
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