Vendor payouts funded by the platform
This model is applicable for platforms who fund vendor payouts upfront and are in the funds flow themselves. The platform processes payouts to customers' vendors throughout the month, and subsequently collects repayments, e.g., at month end from the customers.
Let’s imagine a fictitious platform named VendorPayOS. One of their customers is ImportCo and ImportCo's employees need to use the VendorPayOS platform to make payouts to vendors.
| Platform | VendorPayOS, a platform offering intake-to-pay/spend management services to its customers. |
| Customer | A company / employer who uses VendorPayOS to process vendor payouts. Example customers featured in this guide include ImportCo and MarCo. |
| End User | An employee of ImportCo / MarCo responsible for making payments to vendors through the VendorPayOS platform. |
| Vendor | The vendor that ImportCo / MarCo is buying goods or services from. |
Specific requirements may apply based on the jurisdictions to which you want to deliver services. Always speak to a member of the Airwallex team if you are considering implementing our Global Treasury solution.
Funds flow
The diagram below shows the funds flow for a platform looking to integrate with Airwallex's Global Treasury solution for vendor payouts.
The steps in the flow of funds are described in more detail below. Note that you can potentially initiate multiple operations at the same time - our teams will help you understand the options available in more detail.
Fund the Wallet
The platform Wallet needs to be funded in order to power vendor payouts. This can be done through a number of different methods:
Global Accounts and bank transfer: VendorPayOS can create unique virtual account numbers over API for each currency their customers operate in. These virtual accounts allow funds to be received into their platform Wallet from a number of sources:
- External bank accounts owned by the platform
External bank accounts owned by customers (e.g., ImportCo), if the platform has instructed its customers to send repayments to the Airwallex Global Accounts
There are no limits to how often the platform can fund the Wallet in this way.
Direct debit as a payment method: VendorPayOS can collect repayments from its customers through Airwallex Online Payments functionality as part of a managed checkout flow. Only one direct debit can be triggered per day per external customer, e.g., only one direct debit a day pulling from ImportCo’s external bank account. For more information on this payment method, please contact your Airwallex Account Manager.
Convert funds and manage FX risk [Optional]
If funds are to be paid to vendors in a different currency to the funds held in the Wallet, the platform can specify a source currency in the Wallet to be converted. This allows for vendor payouts to be made in more than 50 currencies globally.
Today, Airwallex has multiple FX capabilities designed to reduce unpredictability when it comes to international transactions, such as our LockFX and post funding features. With these capabilities, platforms know the exact cost in their home currency up-front and customers can rest assured that vendors will always receive the correct amount in their home currency.
Additionally, Airwallex's Revenue ControlBETA API can enable platforms to tap into flexible monetization models for cross-border money movements, for example, marking up FX conversions.
Process payouts
In this integration model where vendor payouts are funded upfront by VendorPayOS (the platform), funds will move from VendorPayOS’s Wallet to the external bank accounts or through payment portals of vendors, who are receiving the payout, over Airwallex’s payout rails.
- Payouts: Trigger payouts to vendors using Airwallex's Payout APIs. Airwallex's network of local clearing systems supports payouts to vendors in multiple countries and currencies, with country-specific delivery time taken into consideration to ensure the payouts arrive in time.
- Batch payouts: This feature may be used to trigger multiple invoice payouts across currencies and countries as one instruction. Batch payouts can also be funded via Direct Debit.
- Beneficiaries: Airwallex offers the possibility to optionally save vendors as beneficiaries for future reference. Beneficiaries should be saved as soon as details become available, to facilitate name screening.