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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
POBO flow

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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.
  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 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

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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.

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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.

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Relevant Links:

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

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Best Practices

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