What is a Payout Partner?

Do you have a payout partner? Do you even know what a payout partner is in the money transfer world? Well, here is a quick explanation of what a payout partner is and does.


Hello. My name is Faisal Khan. I’m a banking and payment consultant. And the question I got today is what is a payout partner.

A payout partner is a person or an entity or usually an organization that is licensed, in a beneficiary country that is actually going to be making the pay out on your behalf. It could be in the beneficiary country, they could also be in a beneficiary city and a state. You could be operating out of New York and your payout partner could be in California, let’s say in Los Angeles. You could be in Chicago and your payout partner could be in Manila or in Dubai. You could be in London and your payout partner could be in let’s say Karachi or in Delhi.

The payout partner is anyone that you have a tie-up agreement with, a correspondent tie-up agreement with, and they’re responsible for dipping into your prefunded account and are payout partners. Payout partners can be both. They can be licensed entities doing over the counter payments, they can be switches, they can be banks, they could be all physical points of presence where you can go in and redeem or, you know, top up a value or a combination of all of these. In most cases they are banks, mobile money network operators and independent MTOs or money transfer organisation agents like let’s say Western Union or Moneygram.

So, I hope I was able to explain the concept of a partner. If you have any questions, as always feel free to ask below. I’ll be happy to answer them. Till next time, thank you.

This page was last updated on September 1, 2022.

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