Account capabilities

A capability is a specific financial function that can be enabled on a connected account. Capabilities determine what your customers can do with their accounts—whether that's receiving inbound payments, converting currencies, making payouts, or spending with a card. Understanding how capabilities work helps you design the right integration and set accurate expectations with your customers about what their accounts can do.

Core capabilities

Connected accounts can be equipped with the following capabilities. All capabilities require identity verification, also known as Know Your Customer (KYC), to be completed as part of onboarding. Capability state changes generate webhook events, so your platform can respond in real time when a capability is activated, suspended, or updated.

Wallet

Every connected account has a wallet—a multi-currency balance used to hold funds. Each currency an account holds is tracked as a separate wallet balance. Funds move in and out of wallets through Connected Account Transfers API, Charges API, inbound collections via Global Accounts API, payouts, and Transactional FX conversions. See Wallets and funds flow for a full explanation of how money moves through the ecosystem.

Global Accounts

Global Accounts give connected accounts their own local account numbers in jurisdictions where Airwallex supports collections. These account numbers allow connected accounts to receive funds directly from payers using local clearing systems or SWIFT, in the account holder's name.

This capability is important for treasury use cases: rather than all inbound funds flowing through the platform's account first, each connected account can receive money independently into its own wallet. A connected account with a Global Account enabled in the United States, for example, has its own ACH routing and account numbers that payers can send to directly.

Transactional FX

The Transactional FX capability allows connected accounts to convert funds between currencies within their wallet at competitive rates. Conversions are performed programmatically using the Conversions API API on behalf of the connected account.

Platforms can apply FX fees on top of Airwallex's base rate, making this one of the key monetization levers in the connected account model. For more information, see Transactional FX.

Transfers and payouts

The Transfers capability allows connected accounts to make outbound payments to external bank accounts. There are two types of payout:

• Self payout: Funds move from a connected account's wallet to its own external bank account. For example, a user withdrawing their balance to a personal bank account.
• Third-party payout: Funds move from a connected account's wallet to another beneficiary's external bank account. For example, a platform disbursing to a supplier on behalf of a connected account.

Ledger and withdrawal accounts support self payouts only. Full connected accounts support both self payouts and third-party payouts. Payouts can be made to recipients in 150+ countries.

Outbound transfers (payouts) are distinct from internal funds movement. Connected Account Transfers API and Charges API move money between wallets within the Airwallex system. Outbound transfers move money out of the Airwallex system to external banks.

Payment acceptance

The payment acceptance capability allows a full connected account to accept payments from end customers directly. This is required for connected accounts operating as the Merchant of Record in marketplace or SaaS payment use cases.

Payment acceptance requires payment activation verification, also known as Know Your Business (KYB), in addition to the standard identity verification. Not every connected account needs this capability—those used only for treasury operations do not need to accept payments. See Compliance and risk overview for a full explanation of the verification sequence.

Card issuing

For Banking as a Service use cases, full connected accounts can be enabled for card issuing. This allows platforms to issue physical or virtual debit cards to their connected account holders. Cards are linked to the connected account's wallet and governed by configurable card controls.

Card issuing is only available on full connected accounts in supported markets and requires card program approval from Airwallex.

Capabilities available to a connected account depend on its account type. See Account types for a comparison of which capabilities each account type supports.