PSP-agnostic solution overview
Airwallex's PSP-agnostic solution allows marketplaces, marketplace technology providers, orchestrators and other platforms to use their pay-in provider (or 'acquirer') of choice, whilst leveraging the strengths of Airwallex's global payout and account infrastructure.
The solution enables any PSP to settle to Airwallex into a Holding Account where funds are held until the platform specifies a seller should receive the funds. The solution keeps the platform out of the flow of funds.
The solution builds on top of Airwallex's multi-currency wallet infrastructure. This allows platforms to 'start with the basics' of a simple seller payout flow, whilst also being future-friendly to allow building out over time a rich suite of embedded financial products for their sellers (e.g. card issuing).
Solution overview
The diagram below illustrates the PSP-agnostic solution for a marketplace.
- Airwallex offers a Holding Account where funds obtained by upstream payment service providers (PSPs) are temporarily stored until the seller on a platform meets specific criteria for release.
- Sellers are onboarded to Airwallex as connected accounts, with the platform acting as the Merchant of Record (MoR) for acquiring PSPs. Sellers do not need to be onboarded to the acquiring PSP.
- The platform shares deposit split data with Airwallex before funds are deposited in the Holding Account, typically sourced from the pay-in PSP's reporting feed. The platform should maintain a direct integration with the acquiring PSP -- Airwallex does not currently support direct integration with acquiring PSPs.
- Funds wait for release in the Holding Account until the platform initiates a split release, triggered when the seller satisfies conditions such as successful goods delivery to the shopper or end of a billing cycle.
- Upon release, funds move from the Holding Account to the seller's connected account (CREDIT) or vice versa (DEBIT). The platform may also create splits to represent fees, which move funds from the Holding Account to the platform’s Wallet.
- Payouts to external bank accounts can be initiated by the platform as needed, such as at the end of a billing cycle.