Go global
by thinking local

Payout methods are options for making any kind of payments to payees. They are now tightly integrated into almost all types of business, including freelance platforms, marketplaces, hotel booking platforms, ticketing platforms and other industries. That’s why many newcomers to business encountered the need for setting up fast and convenient payout methods.

Payout methods are versatile, allowing businesses to conveniently transfer funds to their payees and payees to withdraw money to their bank accounts with a few clicks.

By adopting various payout methods, businesses can benefit from a wide range of options: reimburse their customers, pay salaries and financial considerations to their employees, make payments to contractors and conduct other necessary transactions.

How it works

To start making payouts, you need to connect at least one payout method. Different methods may suit you, depending on the type of your business. For instance, if you’re a freelance platform, you act as an intermediary between clients and contractors, receiving payments from the former and then transferring the funds to the latter. If you’re engaged in the betting or gambling industry, you’ll need to adopt payout methods for paying winnings.

Representatives of different payout methods have different processing procedures, so the money isn’t immediately transferred to a payee's bank account. Transaction consideration can take anywhere from 24 hours to several days depending on the method used and other factors such as amount, currency, country etc.

Thus, payout methods facilitate the flow of transactions between a business and its payees. They enable organisations to manage payments more efficiently and provide payees with timely and uninterrupted payouts.

• Credit cards. Credit cards are the most commonly used payout method around the world. The ability to accept and process credit cards issued by any card network brand allows businesses to go global, thereby improving the conversion rate.
• ank transfers. Bank transfers are the second leading option for sending money. Most payout services exempt their payees from fees when deciding to collect their funds by this method, except for currency conversion.
• Digital wallets. A digital wallet is a fast-growing option that allows payees to get paid quickly and conveniently. The money is immediately available to the payee on their virtual accounts and can be used for future purchases or paying bills.
• Cryptocurrencies. Nowadays, more and more payees value the ability to get paid in cryptocurrencies. That’s why supporting multiple currencies, including cryptocurrencies, is essential for organisations seeking global expansion.
• Mobile payments. As smartphone owners increasingly prefer mobile payment options, businesses have a chance to gain customer loyalty by introducing mobile payouts.
• Local payment options. Supporting local payout options is the key to the global expansion of your business. However, when adopting them, it should be borne in mind that each country/region has certain regulations or restrictions regarding the cross-border movement of funds.

Pros

• Global availability. Payout methods are available literally anywhere, allowing organisations to reach global expansion and the payees from any country to get paid in their preferable option and currency. The more options you integrate - the more value you add to your business.
• Flexibility. By using different payout methods, both payers and payees can benefit from excellent flexibility, having the ability to choose payout frequency (on a daily, weekly or monthly basis), currency and the way of collecting funds. The only aspect that is beyond the control of payers and payees is the speed of transaction consideration. It can take anywhere from 24 hours to several business days for the money to appear in the payee’s bank account.
• Ease of use. Improving payout capabilities is essential to create a good experience for your payees. Most payout methods are completely user-friendly, allowing payees to self-serve and easily collect their funds and companies to manage their transactions efficiently.
• Transparency. Even with multiple payout methods, you won't miss a single transaction if you cooperate with a payment service provider. The digital platform offered by a PSP allows you to monitor and manage your payouts as well as have access to reports on every processed transaction. Plus, it’s a great way to enable a paperless workflow in your office.
• Greater protection. Globality and flexibility aren’t the only benefits of payout methods. In the event of suspicious activity, a PSP will carry out all the necessary anti-fraud procedures, including additional verification.

Cons

• Unpredictable processing speed. Transaction processing speed should be one of the top things to consider before choosing a payout method because no one likes to wait long. Sometimes it may take 1-5 business days for the money to be sent to the payee’s account, depending on their location, currency and other factors.
• Fees. Unsurprisingly, representatives of payout methods, including payment service providers, earn from the operational fees charged from each processed transaction. Therefore, before selecting a payout method, we highly recommend evaluating transaction costs for your organisation and payees.

Nowadays, almost all ecommerce businesses deal with one-off or instant payouts, but before implementing them in your business, several important factors should be considered:

• Internal costs of setting up and maintaining payout structure
• Multicurrency support
• The ability to make payouts in your base currency
• Operational fees and conversion rate
• The ability of your payees to self-serve and choose the preferred method for receiving funds.
• Transaction consideration time

So, how to integrate several payout methods into your business without wasting time and high operational costs? The answer is pretty simple. Payment service providers are already firmly entrenched in the ecommerce market, offering companies scalable solutions for sending money to payees without being tied to location or currency. The adoption of different payout options on your website allows payees to choose how exactly they want to get paid, thereby increasing loyalty to your company and adding value to your business.

If you want to improve your payout structure and expand the list of methods for transferring money to your payees, you should consider partnering with a payment service provider that offers organisations the ability to adapt and manage multiple payout methods at once. Corefy is a payment orchestration platform that provides companies of all sizes and industries with a comprehensive technical solution for making and managing all types of payouts. Try a demo to learn about our product.