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Payout Network

Why Send Cross-Border Payouts Through a Direct Payout Network

If global payouts were like air travel, wouldn't you prefer a direct flight to your destination?

If you had a business trip to an important destination, would you rather take a direct flight or a series of connecting flights? Unless you have plenty of time to spare, there’s a good chance you’d probably choose a direct flight.

Flying direct is often a more pleasant experience. The trip is shorter, you get to your destination faster, and there is less uncertainty because there are no connecting flights that might delay your arrival. It’s also a more pleasant experience on your wallet and your health because there are no layovers. Walking from one terminal to the next can leave you achy and tired, and you’re more likely to spend money on coffee and snacks while you wait around in the airport.

Cross-border or global payouts – just like international flights – move from one country to another. That’s why you often get a huge advantage if your global payout specialist has direct relationships with their Payout Network worldwide.

Choosing a payout specialist that has direct relationships with their Payout Network is like giving your money a direct flight to its destination. If your funds have a “direct connection,” then you and your recipients:

  • Get faster service
  • Avoid intermediary fees
  • Reduce stress 
  • Minimize uncertainties
  • Strengthen business relationships


Get Faster Service with a Direct Payout Network 

Your cross-border payouts move through fewer intermediaries when you go direct.  By traveling a shorter distance to your recipients, funds get delivered directly to their local bank account in a more timely way, or made available to them for cash pickup at nearby payout locations.

Sending payouts through indirect methods tends to delay payout processing. Examples of these indirect methods include sending payouts through bank wires via correspondent banks, or having funds sent to your recipient's virtual account or eWallet. In both cases, it can take several days before the money is transferred to your recipient's local bank account. With a Direct Payout Network, local bank transfers are often completed in less than 24 hours.

Avoid Intermediary Fees with a Direct Payout Network 

Because a Direct Payout Network involves fewer intermediaries, your cross-border payouts are also delivered more cost-efficiently. In contrast, indirect methods involve more intermediaries and often translate to added costs for both you and your recipients. 

In general, the more correspondent banks are involved, the higher the interbank charges you incur. Also, when you send funds to your recipient's virtual account, they often need to pay separate withdrawal fees each time they take funds from those eWallets.  That's on top of the account maintenance and inactivity fees they may incur just to keep those accounts active. By the time they finally get the funds in their bank account, a considerable amount may have already been deducted from their earnings.

Reduce Stress with a Direct Payout Network 

If the burden of paying those extra fees wasn't enough, your recipients who use eWallets may even need to take frequent trips to an ATM in order to withdraw their money using a debit card. At times, they even run into other issues, like their cards getting stuck in the machine or the machine breaking down or running out of funds. 

With a Direct Payout Network, you help your recipients avoid these inconveniences because the funds go directly to their local bank account. By giving your recipients a hassle-free experience, you also do yourself a favor and avoid the stress that comes from dealing with recipient complaints. 

Minimize Uncertainty with a Direct Payout Network

Due to the complexity of sending cross-border payouts, you may be faced with some "unknowns" such as the real costs of sending your payoutsSome payout specialists might try to impress you by claiming they can send payouts to hundreds of countries. But when you take a closer look, you may find they don’t work directly with leading banks and payout partners within those countries. Instead, they act more like middlemen by outsourcing payouts to one or more intermediaries. This is where additional hidden fees may get tacked on and muddy the recipient experience.

Access to a Direct Payout Network gives you more control over your cross-border payouts, and delivers more transparency.  These direct relationships make it easier to see all your costs upfront, with no hidden fees. In this way, you can rest assured knowing that you will get what you are promised. You also have more visibility with tracking the status of your payouts, helping you and your recipients know when funds will be delivered.

Strengthen Business Relationships with a Direct Payout Network

Many companies are now starting to realize that the recipient experience is a critical part of doing global payouts well. It just makes good business sense. If you value your relationships with your recipients – your freelancers, sellers, publishers, writers, designers, photographers, employees, and partners around the world – you wouldn’t want them to get frustrated and stop doing business with you because of an inefficient payout process, would you? This is where your payout specialist’s Payout Network comes into play. When your payout specialist has well-established, direct relationships with their Payout Network, your recipients get a much better payout experience and your relationships with them improve as well.

Think about it: when it comes to receiving your own paycheck, how would you rather get paid? Would you prefer your employer to send funds to a virtual wallet that would burden you with the extra hassle and fees? If you’re among those who find virtual wallets inconvenient, you’d likely prefer that the funds go directly to your bank account, where you have full access to your hard-earned money, with fewer deductions from the middlemen or payout intermediaries.

Other Payout Network Considerations

In addition to checking if your payout specialist has direct relationships with their Payout Network, it’s also important to ask these questions:

Do they serve the countries where you need to send payouts?

Often, you improve operational efficiencies when you work with a single, cross-border payout specialist that covers all, or nearly all, the countries where you need to send payouts. Make sure you consider a payout specialist that has direct relationships with payout partners in hard-to-reach markets.

Do they integrate with all major national banks in those payout countries?

Many recipients prefer getting paid via direct bank deposit because it involves less effort and lower costs for them. These direct deposits are more efficient and speedier if your global payout specialist has direct relationships with the local banks the funds are going into.

Do they provide other value-added services that improve the recipient experience locally?

Look for a payout specialist that gives you the option to send payouts in your recipient's local currency, and also offers additional disbursement options, like cash pickup at nearby payout locations. These additional services can help grow your share in these markets by making it easy and convenient for your recipients to receive their funds.

Direct Delivers More

In both personal and business settings, the benefits you get from your network depend on the quality of your relationships. The more direct your relationships with the right people, the better your chances of achieving your goal. This is also the case when choosing a global payout specialist. 

By choosing a payout specialist with a Direct Payout Network, especially one that has spent years building those direct relationships, you get to leverage those trusted relationships to your advantage and save time, money and effort. The quality of those connections is also considerably better than those who work with those same partners indirectly through intermediaries.

You may have heard the saying, “Your net worth is only as good as your network.” This couldn’t be truer in the cross-border payouts industry: your payout efficiency is only as good as your payout specialist’s Payout Network.

Choose a payout specialist that has well-established, direct relationships with their Payout Network and see the positive impact it delivers for your business, one global payout at a time.

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