How do settlements work (T+1 explained)?

What does T+1 mean?

In PayChangu, T+1 means that funds are settled the next day after the transaction is made.

• T = the day the payment is made

• +1 = the next day

How does the settlement process work?

When a customer makes a payment:

• The payment is received into your Collection Balance

• The funds remain there for processing

• At midnight (T+1), the funds are bundled for settlement

• In the morning hours, the funds move to your Main Balance or linked bank account.

• You can then withdraw the funds

When exactly are funds settled?

Settlements are processed once daily at midnight.

This means:

• Payments made today will be available the next day after midnight

• The exact time may vary slightly, but it follows the T+1 cycle

Why is there a settlement delay?

The settlement period allows for:

• Payment processing and confirmation

• Reconciliation across payment methods (mobile money, banks, cards)

• System checks and security validations

What should I know?

• You cannot withdraw funds before they are settled

• Only funds in your Main Balance are available for withdrawal

• All payment methods follow the same T+1 settlement cycle