Less is more, but that’s not always the case for global payouts.

In fact, the more options you have for your recipients, the better it is for your business. But knowing where to start and what options to provide can be tricky, especially if you want to keep your valued recipients happy.



Choosing Options Your Recipients Prefer

There is more competition in the business world than ever before, but providing a slew of payout options that your recipients can pick and choose from can help you stand out.

This means, offering multiple types of payout options, covering everything from direct bank transfers to checks and prepaid cards. When recipients can choose their preferred method to receive money, they are less likely to jump ship and find another platform that has a wider selection of options.

What Are The Options?

  1. International Wire Transfers

These are international payment messages that are delivered bank-to-bank through a correspondent bank network. One of the most famous international wire transfers is the SWIFT Wire Network (here’s a guide on how that works).



The Pros of International Wire Transfers

  • Wire transfers have the most widely used global financial payout and pay-in messaging system
  • SWIFT enables the world’s correspondent banking networks
  • Various compliance and security measures are in place to safeguard transactions

The Cons of International Wire Transfers

  • You might get hit with surprise charges and hidden interbank fees
  • Lack of transparency with transactions
  • Payments can take days or weeks to come through
  • Unpredictable levels of service
  • Different bank requirements and regulations can lead to delayed or lost payments

  1. Cash Transfer Services

These services send and receive payments to cash agent locations.

counting money


The Pros of Cash Transfer Services

  • Great for payments to emerging, cash-driven markets where banks and credit cards aren’t widely used
  • Recipients have immediate access to funds

The Cons of Cash Transfer Services

  • High transaction fees and FX markups for the sender
  • Limited transaction transparency
  • High incidences of fraudulent activity

  1. Prepaid Cards

These are pre-funded payment cards that are typically sponsored by Visa or Mastercard and can be used to make purchases or cash withdrawals at ATMs.

The Pros of Prepaid Cards

  • Transfers take 24 hours or less
  • Strong reporting capabilities
  • Greater transparency

The Cons of Prepaid Cards

  • Excessive hidden costs for recipients, like monthly maintenance fees, withdrawal charges, and activation fees
  • International recipients must pay additional cross-border and FX conversion fees for each transaction
  • Delays with card issuing, mailing, and registration
credit card-1


  1. E-Wallets

These are virtual accounts that allow funds to be exchanged and stored in a virtual wallet.

The Pros of E-Wallets

  • Secure payments that don’t require the exchanging of personal information
  • Convenient for businesses to transfer instant funds to recipients

The Cons of E-Wallets

  • Lengthy process to access funds, which can lead to delays and added costs
  • High fees and varying transfer fees when transferring from an e-wallet into a bank account
  • Limited funding options in most emerging markets
  • Possible chance of money laundering


  1. Checks

Most people know about good, old-fashioned checks but in case you don’t, they are a printed form of exchanging bank-to-bank payments.

The Pros of Checks

  • A traditional form of payment that has been tried and tested over many years
  • Can be used all around the world

The Cons of Checks

  • Extra time and resources are needed for processing
  • Difficult to resolve if lost or stolen
  • Some country-specific banks don’t accept them
  • Many countries are moving away from paper checks
  1. Local Bank Transfers

These are independently owned alternative global bank payout services that operate outside of the SWIFT Wire Network.

The Pros of Local Bank Transfers

  • No intermediaries
  • Lower fees than other payout services
  • Faster transfer speeds
  • Direct access to difficult regulatory markets
  • In-house compliance teams

The Cons of Local Bank Transfers

  • Few payout providers have self-owned payout networks
  • Lack of differentiation and general awareness

Workers are less patient with payment platforms that take days or event weeks to expel their funds. There’s more demand than ever for workers to be paid by local bank transfers, with people leaving payout platforms that don’t provide it as an option.

Why Transpay?

Transpay is a global payments service that provides businesses of all sizes with a scalable, secure, and fully compliant cross-border mass payout solution, making it easy to send funds directly to the local bank accounts of vendors, business partners, freelancers or others, reaching over 95% of bank accounts worldwide. 

Over the last 30 years, we’ve built a global payout partner network consisting of direct relationships with hundreds of banks and financial institutions, enabling us to securely, quickly and efficiently make local bank transfers to billions of consumer and business bank accounts.


Check out our Cross-Border Payments Chart to further compare enterprise payout solutions

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