6 min read

Understanding Global Payout Endpoints

Understanding Global Payout Endpoints

As companies seek and hire talent globally, it’s critical to accommodate locally preferred payment methods. 

This flexibility will significantly companies improve the company's ability to consistently attract and retain top talent – and drive future business growth and profitability. 

Firms that address local preferences by offering multiple payout endpoints will have a significant advantage over competing businesses in the same sector. 

This piece examines how support for locally preferred global payout endpoints can help your firm connect with an exceptional, worldwide talent pool. By seamlessly integrating these payment solutions within your existing systems, you’ll not only exceed expectations externally but you’ll streamline your internal operations with powerful reporting and global integrated compliance.


SEPA: Simplifying European Transfers

Single Euro Payments Area (SEPA) is a payout initiative by the European Union that creates a unified standard solely for Euro-based transactions. This payout endpoint allows users and businesses to make cross-border payments quickly and seamlessly across Europe. 

SEPA aims to simplify financial interactions. It supports 36 countries, including all EU member states and several other European nations outside the EU. Benefits of SEPA include:


  • Uniformity: SEPA uses a single set of standards, which helps eliminate discrepancies or potential errors that can typically occur between different national payment systems.
  • Speed: SEPA transfers offer speedy payout times, typically completed within one business day, ensuring businesses can confidently move funds rapidly and payees can receive funds quickly.
  • Lower Costs: SEPA reduces fees associated with cross-border transactions, making it more affordable for businesses and individuals.


As a payout type that integrates with the European banking system, SEPA uses a common grouping of standards, such as International Bank Account Numbers (IBAN) and Bank Identifier Codes (BIC) to ensure consistency and connectivity between all member institutions. With its seamless integration, SEPA provides faster reconciliation and transaction times. Here are some examples of SEPA applications in finance, which include:


  • Direct Debits: SEPA Direct Debit (SDD) provides automatic debit from customer's accounts for regular ongoing payments.
  • Credit Transfers: SEPA Credit Transfer (SCT) is for one-time or recurring payments, vendor payments, and other business transactions.


Integration: With the power of APIs, organizations can easily integrate SEPA payouts into their existing operations, making payments across the EU as simple as domestic ones. The innovative integration of APIs offers compliance, comprehensive reporting, and reconciliation, allowing companies to effortlessly manage European transactions. 

This method ensures that SEPA credit transfers and direct debits will be quickly processed within a broader payment system, enhancing efficiency and streamlining complex operations.


ACH: The Backbone of US Payments

Automated Clearing House (ACH) is an American payment system for the transfer of electronic funds. ACH payments include ACH debits, the withdrawal of funds from an account, and ACH credits, which deposit funds into a bank account. The advantages of ACH for domestic payouts, billing, and business transactions are significant and include:


  • Reliability: ACH has developed a reputation for being a highly trusted system and a consistent payment framework for many decades.
  • Cost-Effectiveness: ACH transactions are generally more affordable than credit card processing.
  • Flexibility: ACH supports various transaction types, from direct deposit for payouts to automatic bill payments.


The primary difference between ACH debit and ACH credit transactions is which party initiates the payment. In the case of ACH debit, the payee initiates the payment, such as a company withdrawing a payment for a service. 

In contrast, ACH credit is initiated by the payer, such as an employer depositing payment into an employee's account. 

NACHA (National Automated Clearing House Association) oversees and regulates ACH standards and procedures to ensure a secure and reliable payment system. 

Integration: Integrating ACH using APIs allows businesses to automate domestic transactions while ensuring compliance with NACHA regulations. ACH provides businesses with a more affordable and reliable option for transferring funds between bank accounts. As a result, ACH is almost universally accepted by international businesses looking for payout endpoint options for large transactions or mass payments. 


APMs: Alternative Payment Methods

Alternative Payment Methods (APMs) are non-traditional payout endpoints that are increasingly popular primarily due to their flexibility and alignment with consumer preferences. This growing traction is partly because of how broad APMs are in scope, encompassing numerous payment methods beyond conventional credit cards or cash. Examples of APMs, which include: 


  • Bank Transfers: APMs allow direct transfers between bank accounts, often used for online purchases.
  • E-checks: APMs can use electronic checks, similar to paper checks, but they are processed electronically.
  • Vouchers:  APMs include prepaid vouchers or cards for specific purchases.
  • Cash Pickup: <tbd definition / description>


As consumer and payee preferences globalize, APMs have evolved to meet these changing needs for more inclusive payment options. The impact of APMs on worldwide eCommerce and market reach has been substantial, requiring businesses to cater to customers who prefer these methods. As a result, this growth has led APMs into new markets, especially in regions where traditional banking services are less prevalent. 

Integration: APIs that support APMs allow businesses to accept various payment methods in one system. This flexibility is vital for continuing global operations because it allows companies to cater to regional preferences without complex infrastructure. 

Furthermore, API integration provides built-in compliance and reporting, making tracking and managing APM transactions alongside other payout types easier, ensuring a smooth customer experience and operational efficiency.


Real-Time Payments: The Future of Immediate Settlements

Real-Time Payments (RTP) offer immediate settlements and instant transaction confirmations, essentially providing a faster, more immediate alternative to traditional payment processing. RTPs differ from traditional methods because they don't require long clearing or batch processing periods. 

As global adoption and infrastructure steadily grow and evolve, RTP systems continue to gain significant momentum. Some examples of this rising popularity include the US, where RTP is rapidly growing as a network, while India's Unified Payments Interface (UPI) has revolutionized instant payments. Several of the advantages that RTPs include: 


  • Reduced Risk: RTPs reduce the risk of delays and bounced transactions.
  • Enhanced Cash Flow: RTPs allow businesses to receive funds immediately, allowing for better cash flow management.
  • Improved Customer Experience: RTPs increase the speed of real-time payments and enhance the customer experience, increasing satisfaction.


As with many payout endpoints, there are drawbacks, including implementing RTP systems. RTP infrastructure can be significant, and ensuring interoperability with existing systems is critical. Regulatory considerations and compliance with security standards are critical in ensuring a successful rollout. 

Integration: Integrating APIs that support RTPs enables businesses to process settlements quickly, helping to streamline cash flow delivery and availability. Organizations that decide to integrate APIs can manage their cash flow more effectively, reducing delays and enhancing customer satisfaction.


Mobile Wallets: Convenience in Your Pocket

Mobile wallets are digital platforms that securely house payment information. This payout endpoint allows users to make payments with their smartphones or other mobile devices. 

Mobile wallets use cutting-edge technologies such as Near Field Communication (NFC) and QR codes, enabling secure and seamless transactions. Here are some of the competitive advantages that mobile wallets offer, which include: 


  • Security: Mobile wallets use encryption and tokenization to protect payment information and secure transactions.
  • Ease of Use: Mobile wallets use a simple tap or scan, allowing users to complete transactions without physical cards or cash.
  • Loyalty Programs: Mobile wallets offer integrated loyalty programs that provide users with rewards and incentives for usage.


Current global trends show that mobile wallet adoption and usage vary by region; some areas embrace the technology more than others. High-adoption regions are typically those with limited access to traditional banking infrastructure and services.

For example, in parts of East Asia, mobile wallets are used everywhere, while North America and Europe have shown less eagerness to adopt this payout endpoint, to date. Businesses that integrate mobile wallets into their payment strategies and infrastructure can benefit from this trend, attracting more customers and <need more reasons why someone should do this here>.

Integration: Integrating mobile wallets through an API enables companies to provide customers with new and convenient payout endpoint options while staying compliant and secure. API integration makes it accessible to accept mobile wallet transactions without needing a physical bank card or cash, resulting in fast transaction speed and reconciliation. 

Ultimately, API integration can allow businesses to grow their customer base and increase overall company profitability by focusing on providing convenient payout endpoint types for clients.   


Cash Pickup and Delivery: Bridging the Digital Divide

Cash pickup and delivery systems help individuals who may not have access to traditional banking infrastructure. This payout endpoint allows users to send and receive funds within regions still working on becoming fully digitized or in places where cash is still king when it comes to paying. Here's how cash pickup and delivery services work:


  • Cash Pickup: Cash pickup works with the sender first, transferring funds by providing details and payment, then receiving a confirmation with a unique transaction code to share with the recipient. Next, the recipient verifies their identity at a physical pickup location or online using the transaction code, collects the cash, and confirms receipt.
  • Cash Delivery: The cash delivery process begins with the sender initiating a cash delivery by selecting the option during a money transfer and then providing the recipient’s address and payment method; the service then coordinates with local couriers for secure delivery to the recipient. After the funds arrive, the recipient confirms their identity using a PIN or code to receive the cash. Upon completion, both parties will get confirmation notifications.


Cash pickup and delivery is a critical option for populations without access to secure banking, as it allows these users to access funds without requiring an account. However,  it’s important to note that this payout endpoint type still faces significant logistics, security, and scalability challenges. 

Integration: Businesses that integrate APIs can offer payout services to users who have historically relied on options such as cash pick and cash delivery. This integration is crucial for firms conducting business in regions where customers don’t typically primarily use or have access to secure bank accounts to conduct transactions. 

At its core, an API application ensures the thorough tracking and reporting of cash transactions, contributing to transaction compliance and security and providing a comprehensive payment solution for all customers.


Embracing a Unified Payment Strategy

If you're looking to enhance your business’ global payment strategy, it's critical to understand the different available payout types and the benefits each offers. 

Using a payout solution like MassPay can meet your needs for seamless integration and compliance while satisfying your customer’s preferences, helping to substantially reduce the risks associated with manually managing these processes.

Find out how integrating these payout types with one single API can help you seamlessly offer globally available and locally preferred payout endpoints, ensuring smooth transactions and regulatory compliance. 

If you’re looking to revolutionize your payment operations, visit MassPay.io  for more information on how we can help make locally preferred payout endpoints a reality for your company.

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