Introduction
Managing employee expenses efficiently is critical for businesses aiming to streamline operations and optimise costs. Two noteworthy solutions in this domain are Happay and CashBook. While both platforms cater to expense management, their methodologies and features differ significantly. Here’s a detailed comparison to help you make an informed choice.
1. Core Payment Mechanism
Happay:
Utilises prepaid cards as the primary method for managing expenses.
Prepaid cards are not universally accepted, necessitating cash in certain scenarios.
Drawback: Cash withdrawals are possible but incur a fee of Rs 25 per transaction, which can be a deterrent for businesses aiming to eliminate cash transactions.
CashBook:
Leverages UPI wallets for expense management, supporting all UPI-based payment methods such as QR code scans, UPI ID transfers, online payments, and individual transfers.
Fully eliminates the need for cash, ensuring seamless, cashless transactions.
Advantage: Removes the hassle of cash withdrawals, enhancing operational efficiency.
2. Cost Considerations
Happay:
Offers cheaper annual fees by earning through MDR (Merchant Discount Rate) from card transactions.
Involves an issuance cost for prepaid cards, adding to the initial setup expense.
Additional costs include a 1% surcharge on fuel transactions and integration costs for system adoption.
Estimated cash pilferage costs of 5-10% of total spends, as cash is still used in scenarios where prepaid cards are not accepted.
CashBook:
Does not have issuance fees, as UPI wallets are virtual and require no physical cards.
Offers lower integration costs, making it more affordable for businesses to adopt.
Transparent pricing model with no surcharges on fuel or other hidden charges.
3. Employee Convenience
Happay:
Employees often forget to attach invoices or bills, as prepaid cards allow payments without immediate proof of purchase.
Attaching proof is a separate process, requiring either a phone or web app, which can lead to inefficiencies.
CashBook:
Designed for ease of use, enabling employees to pay and attach proofs in a single, seamless flow within the app.
This integration reduces administrative overheads and ensures compliance.
Employees find it intuitive and efficient as most of them already use UPI for their personal expenses.
4. Eliminating Cash Transactions
Happay:
Does not fully eliminate cash, as prepaid cards have limited acceptance and cash withdrawals are still required in some cases.
CashBook:
Fully cashless, thanks to its integration with UPI, which enjoys near-universal acceptance in India.
Ideal for businesses transitioning to a 100% digital payment ecosystem.
5. Industry Use Case and Scalability
Happay:
Suitable for businesses comfortable with card-based transactions and willing to manage associated costs and limitations.
May require additional training and systems to ensure invoice compliance.
CashBook:
Perfect for all businesses seeking a cost-effective, widely accepted solution.
Highly scalable due to its reliance on UPI, a rapidly growing digital payment method in India.
Conclusion
Both Happay and CashBook aim to simplify expense management, but the choice depends on your business needs. If your organisation favours a card-based system with a focus on MDR-based cost savings, Happay might be the right fit. However, for businesses looking for a cost-effective, universally accepted, and user-friendly solution that completely eliminates cash, CashBook emerges as the superior choice. Its UPI wallet integration, seamless proof attachment, and transparent pricing model make it the go-to platform for modern businesses.
