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Tazapay’s Collections on Behalf Of (COBO) capability allows platforms / fintechs to receive funds on behalf of their customers which can be individual or business. Tazapay can configure virtual accounts or stablecoin wallets for your customers to receive payments. This ensures compliance, traceability, and correct attribution of incoming funds.

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High-level Flow

  1. Create an Entity (Individual or Business)
  2. Create a Virtual Account or Stablecoin Wallet
  3. Share account details with the Payer
  4. Receive and attribute Incoming Funds
  5. Handle Collection 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 collection is being made. Every virtual account or wallet 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 virtual accounts or wallets.
  1. Business Entity Requirements - Full Onboarding
  2. Individual Entity Requirements - Full Onboarding
  3. Entity Requirements - Simplified Onboarding
  4. Create Entity API - Business
  5. Create Entity API - Individual
  6. Submit Entity API - Business
  7. Submit Entity API - Individual

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Step 2: Create a Virtual Account or Stablecoin Wallet

Once you have a submitted entity, you can create a collection destination for them. Tazapay supports two collection destination types:

Virtual Accounts

Bank account numbers that can receive local or international transfers. Funds are automatically attributed to the associated entity.

Stablecoin Wallets

Blockchain wallet addresses for receiving stablecoin payments (e.g., USDC, USDT). Ideal for crypto-native businesses.

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Virtual Account Features

FeatureDescription
Multi-currencySupport for multiple currencies per entity
Local railsReceive domestic transfers with local account numbers
InternationalReceive SWIFT/wire transfers
Auto-reconciliationIncoming funds automatically matched to entity

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Stablecoin Wallet Features

FeatureDescription
Supported tokensUSDC, USDT (network availability varies)
NetworksMultiple blockchain networks supported
Auto-conversionOptional conversion to fiat on receipt
Real-timeNear-instant settlement

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Step 3: Share Account Details with Payer

Once the virtual account or wallet is created, share the account details with the payer (your customer’s customer or counterparty).
You can retrieve the account details programmatically via API and display them in your platform’s UI, or send them directly to the payer via email or invoice.

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Virtual Account Details Include

  • Account number / IBAN
  • Bank name and address
  • SWIFT/BIC code (for international transfers)
  • Routing number (for local transfers)
  • Reference code (for attribution)

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Stablecoin Wallet Details Include

  • Wallet address
  • Supported networks
  • Supported tokens
  1. Viewing Virtual Accounts and Stablecoin Wallets

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Step 4: Receive and Attribute Incoming Funds

When a payer sends funds to the virtual account or wallet:
  1. Tazapay receives the incoming transfer
  2. Funds are automatically attributed to the associated entity
  3. A webhook notification is sent to your platform

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Step 5: Handle Collection Events & Webhooks

Tazapay sends webhooks to notify you of collection events. You should always rely on webhooks (not polling) for real-time fund attribution.
  1. Collect Webhook Events
  2. Collect State Machine
  3. Get Collect API

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Best Practices

1

Verify Webhook Signatures

Always validate webhook signatures to ensure authenticity and prevent spoofing.
2

Implement Idempotency

Handle duplicate webhook deliveries gracefully by tracking processed event IDs.
3

Store Event History

Maintain a log of all collection events for reconciliation and audit purposes.
4

Monitor for Anomalies

Set up alerts for unexpected collection patterns or failed attributions.