Payouts on behalf of

Learn about Payouts on behalf of

Tazapay’s Payouts on Behalf Of (POBO) capability allows platforms / fintechs to initiate payouts on behalf of their customers which can be individual or business. This ensures compliance, traceability, and correct attribution of funds.

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High-level Flow

1. Create an Entity (Individual or Business)
2. Create a Beneficiary
3. Create a Payout using the Entity + Beneficiary
4. Handle Payout Events / Webhooks

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Step 1: Create an Entity (Individual or Business)

An Entity represents a platform’s or fintech’s customer — the party on whose behalf the payout is being made. Every payout must be associated with an entity.

Tazapay supports two entity types:

• Business Entity – for registered companies
• Individual Entity – for individual customers (e.g., freelancers, creators, sole proprietors)

⚠️ Only entities with status submitted can be used to create payouts.

Relevant Links

1. Business Entity Requirements - Full Onboarding
2. Individual Entity Requirements - Full Onboarding
3. Entity Requirements - Simplified Onboarding
4. Create Entity API
5. Submit Entity API

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Step 2: Create a Beneficiary

A Beneficiary represents the recipient of funds.

This can be:

• An individual
• A business

The destinations supported are

• Bank account
• Mobile Wallets
• Local Networks or Proxies
• Stablecoin Wallets
• Another Tazapay account

Relevant Links:

1. Create Beneficiary API
2. Payout Metadata Bank API - This API lists the beneficiary requirements and transfer limits based on destination country and currency

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Step 3: Create a Payout

Once you have:

• A submitted entity
• A created beneficiary

You can create a payout using the Tazapay API and attach the entity and beneficiary.

Relevant Links:

Create Payout API

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Step 4: Handle Payout Events & Webhooks

Tazapay sends webhooks to notify you of payout state changes. You should always rely on webhooks (not polling) for final payout outcomes.

Relevant Links:

1. Payout State Machine
2. Payout Webhook Events
3. Payout Failure Reasons
4. Payout Reversal Reasons

Best Practices

• Always verify webhook signatures
• Make payout creation idempotent
• Store payout event history for reconciliation

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