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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
  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
  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. 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.
  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