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Overview

Technical Service Providers (TSPs) can integrate with Tazapay to enable fintechs, financial services companies, and marketplaces to offer global payout capabilities to their end customers (ultimate remitters).

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Key Participants

  • Technical Service Provider (TSP): Platform or technology provider that integrates with Tazapay and manages the technical integration on behalf of multiple fintechs
  • Fintech / Marketplace: Financial services company or marketplace that serves ultimate remitters and requires payout capabilities
  • Ultimate Remitter: The end customer of the fintech/marketplace who initiates the payout request
  • Tazapay: Compliance and payout orchestrator that handles KYB, beneficiary screening, and cross-border disbursements
  • Beneficiary: The recipient who receives the payout

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Built-in Compliance and Security

All transactions are subject to comprehensive compliance checks:
  • Entity-level KYB: Full Know Your Business verification for fintech/marketplace entities
  • Remitter screening: Sanction & PEP screening for ultimate remitters
  • Beneficiary validation: Account validation and screening
  • Adverse media checks: Automated fraud and risk detection
  • Real-time approval workflows: Transaction monitoring and approval

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Integration Flow

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High-level Architecture

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Implementation Guide

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Step 1: Entity Onboarding

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1.1 Create Fintech/Marketplace Entity

The TSP creates an entity for each fintech or marketplace that will use the platform. Onboarding Type: Full Onboarding Fintechs and platforms must complete full entity onboarding with comprehensive business verification:
  • Business registration verification
  • Document validation
  • Sanctions screening
  • Entity status flow: pending → approved or rejected
API Reference:

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1.2 Create Ultimate Remitter Entities

The TSP creates entities for ultimate remitters (end customers) on behalf of the fintech entity. Onboarding Type: Simplified Onboarding Ultimate remitters undergo simplified entity creation with basic information:
  • Uses on_behalf_of field to link remitter to fintech entity
  • Faster approval with basic screening
  • Minimal documentation required
API Reference:

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Step 2: Quote Generation (Optional)

Quotes provide transparency on FX rates and fees before payout creation. What Quotes Include:
  • FX Rate: Real-time exchange rate for currency conversion
  • Fees: Total processing fees
  • Total Deduction: Exact amount that will be deducted from balance
  • Validity Period: Quote expiration time (typically 15-30 minutes)
The quote step is optional. You can create payouts directly without quotes. However, quotes provide transparency and help end users understand the total cost upfront.
API Reference:

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Step 3: Funding Configuration

Choose between two funding models based on your business needs:

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Option A: Prefunding

How it works:
  • TSP or fintech maintains a balance with Tazapay
  • Funds are deposited in advance via wire transfer or other methods
  • Each payout automatically deducts from the balance
Benefits:
  • Faster payout processing
  • No additional confirmation step
  • Suitable for high-volume operations
  • Streamlined workflow

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Option B: Per-Transaction Funding (Just-in-Time)

How it works:
  • Funds are transferred for each individual transaction
  • Payout enters requires_confirmation status after creation
  • TSP transfers funds using:
    • Stablecoins: USDT, USDC via blockchain networks
    • Fiat: Real-time payment methods (wire transfer, local bank transfers)
  • Explicit confirmation required after funding is received
Benefits:
  • No prefunding required
  • Better fund management and control
  • Suitable for lower transaction volumes
  • Pay-as-you-go model
  • Flexible funding sources (crypto or fiat)
Per-transaction funding requires an additional confirmation step after funds are received. Ensure your integration handles the requires_confirmation status and implements the confirmation flow.
API Reference:

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Step 4: Create Payout

Create payouts on behalf of ultimate remitters using the Create Payout API. Required Information:
  • Entity ID: Ultimate remitter’s entity ID (created in Step 1.2)
  • On Behalf Of: Fintech/marketplace entity ID (created in Step 1.1)
  • Beneficiary Details: Recipient’s bank account or wallet information
  • Amount & Currency: Payout amount and currency
  • Purpose Code: Transaction purpose (e.g., PYR001 for salary, PYR002 for services)
  • Quote ID: (Optional) Link to previously created quote for locked rates
API Reference:

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Step 5: Handle Webhooks

Subscribe to webhook events to track payout status and notify end users in real-time. Key Webhook Events:
  • payout.created - Payout record created
  • payout.requires_confirmation - Waiting for funds (per-transaction funding only)
  • payout.funded - Funds received and confirmed
  • payout.processing - Payout in progress
  • payout.completed - Payout successful
  • payout.failed - Payout failed
Implementation Guide:
  • Configure webhook endpoint in your Tazapay dashboard
  • Verify webhook signatures for security
  • Handle idempotent webhook delivery (retries may occur)
  • Update your system and notify end users based on events
API Reference:

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Entity Hierarchy

Technical Service Provider (TSP)
│
├── Fintech Entity A (Full Onboarding)
│   ├── Ultimate Remitter 1 (Simplified Onboarding)
│   ├── Ultimate Remitter 2 (Simplified Onboarding)
│   └── Ultimate Remitter 3 (Simplified Onboarding)
│
├── Fintech Entity B (Full Onboarding)
│   ├── Ultimate Remitter 4 (Simplified Onboarding)
│   └── Ultimate Remitter 5 (Simplified Onboarding)
│
└── Marketplace Entity C (Full Onboarding)
    ├── Ultimate Remitter 6 (Simplified Onboarding)
    └── Ultimate Remitter 7 (Simplified Onboarding)
Onboarding Types:
  • Full Onboarding: Required for fintechs, platforms, and marketplaces with comprehensive business verification
  • Simplified Onboarding: Used for ultimate remitters with minimal documentation requirements

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Testing

Use sandbox environment for testing:
  • Sandbox Dashboard: https://dashboard-sandbox.tazapay.com
  • Test entity creation and verification flows
  • Simulate different payout scenarios
  • Test webhook integrations
  • Use test credentials for stablecoin and fiat funding

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API Resources