Choosing the Right Payout Methods for Your Payees

Before starting, take stock of your organization’s business objectives. Doing so will help focus attention on activities that will have a great impact on value. Whether you’re looking to tackle global expansion or improve domestic conversions, the most successful payout adoption program will help to accomplish these value drivers as well as improve the payee experience.

Top Five Considerations for Choosing the Right Payout Method

1. Payee demand and demographic

Gen Z payees in Zürich may not value the same payout methods as Baby Boomers in Boston, or a small company producing goods sold on a digital marketplace. So understand the diverse needs of your payees, listen to payees’ preferences, and adjust your payout offerings accordingly.

2. User experience

An intuitive, self-service experience for payees to collect payments in their local currency goes a long way to building positive brand sentiment and trust. A branded experience could also be important in helping drive business performance, build loyalty and inspire action from your payee or user base. Consider also the UX impact on in-house teams to ensure they aren’t being forced to take on additional strain.

You may need a payout mechanism that’s integrated into your existing site or platform,, or prefer to adopt an external turnkey environment and simply white label the front end. Either way, any self-serve capability would need to streamline the workflow for your business without adding complexity.

3. Cost

Payout methods have inherently different cost and transaction structures — for both organizations and payees.

Fees for international payments can be applied at significantly varied rates depending on the method. Exchange rates and currency flips should be front of mind when considering payout methods for a globally dispersed network.

Also account for ongoing internal costs that can accrue—such as for payments reconciliation and transaction monitoring. Controlling how transaction reports are generated, the way in which funds are collected, or even how refunds are initiated and managed, may add cost. Partnering with a trusted payout provider, especially one that offers full-stack capabilities and integrated treasury management support, can reduce costs both for payees and operational teams.

4. Speed and flexibility

In this day and age, it just doesn’t make sense to have a business model based around speedy delivery of products and/or services, and not have a payout structure set up to match that efficiency. Your company’s ability to be flexible and provide fast and efficient payout functionality to sellers, drivers and users is increasingly important.

5. Geography and globality

Maybe you are already a global business, or you need a partner that helps you expand your business globally, Payees around the world increasingly expect diverse payout methods presented in multiple currencies and localized languages. Supporting multi-currency payments is therefore critical in facilitating global operations, and helping payees avoid being charged high fees for currency conversion.

Digital payout methods and cash pickup are also in strong demand in certain countries as they appeal to banked, unbanked, and underbanked populations, and can even offer additional benefits to businesses by lowering transaction and administrative costs.

How PayPal Hyperwallet can help

When you choose to work with PayPal Hyperwallet, your organization has the ability to enable all or a selection of nine payout options for payees, who can then self-serve and select their preferred transfer method. Check out how Freightos reduced operational costs and enhanced efficiency by integrating PayPal’s Braintree and Hyperwallet solutions. And here's how Tradera streamlined its operations and scaled the business by doing the same.

Review the Payout Method Comparison Guide to compare and contrast PayPal Hyperwallet’s nine transfer methods, and better understand the benefits, requirements and considerations of each unique offering.