Payout Models

Payouts supports multiple payout models that allow platforms to determine how recipient funds are held, managed, and delivered.

The right payout model depends on factors such as recipient expectations, business objectives, user experience requirements, operational controls, and the financial capabilities the platform wants to provide.

At a high level, Payouts supports two primary models:

• Embedded Fiserv-Enabled Payouts, where funds are delivered to Fiserv-managed accounts within the platform ecosystem.
• Non-Embedded Payouts, where funds are delivered to external financial destinations owned or controlled by the recipient.

Understanding the differences between these models can help you design the payout experience that best aligns with your business goals.

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Available Payout Models

Embedded Fiserv-Enabled Payouts

The Embedded Fiserv-Enabled Payout model allows platforms to direct funds into Fiserv-managed financial accounts that exist within the platform ecosystem.

Instead of immediately sending funds externally, recipients can maintain balances within supported account structures and access funds through platform-enabled financial experiences.

This model is designed for platforms that want to provide enhanced financial capabilities while maintaining greater visibility and control over recipient balances.

Common Scenarios

• Seller wallets
• Platform-managed earnings accounts
• Embedded financial account experiences
• Stored-value solutions
• Internal balance management

Business Benefits

• Retain funds within the platform ecosystem
• Support recipient balance visibility
• Enable internal transfers and fund movement
• Deliver embedded financial services
• Create opportunities for value-added financial experiences

Refer to the Embedded Fiserv-Enabled Payouts section to learn more.

Non-Embedded Payouts

The Non-Embedded Payout model delivers funds directly to financial destinations owned or controlled by the recipient.

Funds are transferred outside the platform ecosystem using supported payout methods such as bank accounts, debit cards, digital wallets, and other approved payout destinations.

This model is designed for platforms that want to provide traditional payout experiences where recipients receive funds through financial accounts they already use.

Common Scenarios

• Marketplace seller payouts
• Contractor and freelancer payments
• Merchant settlements
• Host payouts
• Domestic and international disbursements

Business Benefits

• Broad recipient reach
• Familiar recipient experience
• Flexible payout destination options
• Support for domestic and cross-border payouts
• Simplified recipient onboarding to existing accounts

Refer to the Non-Embedded Payouts section to learn more.

Using Multiple Payout Models

Payout models are not mutually exclusive. Many platforms support multiple payout experiences across different participant types, regions, products, or business scenarios.

For example, a platform may allow some recipients to maintain balances in Fiserv-managed accounts while allowing others to receive funds directly through external bank accounts, debit cards, or digital wallets.

This gives platforms flexibility to tailor payout experiences to recipient preferences and business requirements.

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Compare Payout Models

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How to Choose a Payout Model

Consider the following questions when selecting a payout model:

1. Where should recipients receive funds?

• If recipients should maintain balances within platform-managed accounts, consider Embedded Fiserv-Enabled Payouts.
• If recipients should receive funds directly into existing financial accounts, consider Non-Embedded Payouts.

1. Do you want to offer financial experiences beyond payouts?

• Platforms interested in wallets, account-based experiences, balance management, or embedded financial services should consider the Embedded Fiserv-Enabled model.

1. Do recipients prefer to receive funds externally?

• If recipients expect earnings to arrive directly in their bank account, debit card, or digital wallet, the Non-Embedded model may be a better fit.

1. Do you need flexibility to support different recipient experiences?

• Many platforms utilize both approaches across different participant types, regions, or business scenarios.

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Typical Decision Scenarios

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Next Steps

After selecting a payout model, explore the detailed implementation and operational considerations:

• Embedded Fiserv-Enabled Payouts
• Non-Embedded Payouts
• Payout Instructions
• Payout Scheduling
• Payout Reversals and Exceptions
• Payout Events