Your Guide To Mass Payouts: Definition | Benefits | Solutions

Have you ever wondered about how mass payouts work? This article will go into it all – what they are, when they might be beneficial, and the best solutions out there to make the process as smooth as possible.

We’ll also be discussing Wise Business as a great account for simplifying mass payouts for businesses across the globe. If you’re ready to revamp your business transactions, stay tuned!

Want to make mass payouts at easily and at low cost?

Get a Wise Business account >>

Trustpilot: 4.3/5 average rating - Excellent¹
No minimum balance required and no monthly fees

Table of Contents

What are mass payouts? What are the steps in a mass payout? 1) Figure out what kind of payments you need to make 2) Make sure you have the correct payment data #3) Choose a mass payout solution 4) Upload recipient data 5) Specify payment amounts and schedule 6) Approve payments 7) Processing the payment 8) Communication and notifications 9) Reconciliation and reporting 10) Payment analysis (Post-mortem) Benefits of Mass Payouts Saving time and creating efficiency Scaling partner payments Enhanced security Cost-effectiveness Global reach Improved tracking and accuracy Compliance and risk Additional benefits of a mass payout solution Mass Payout Solutions and Services Wise Business Mass Payouts PayPal Mass Payment Payoneer Payouts What are API payouts? When should businesses use mass payouts? Contractor payments Payroll processing Vendor and supplier payments Affiliate marketing Subscription-based services Global workforce payouts The Bottom Line for Mass Payout Software Why Businesses Love Wise

What are mass payouts?

At its most basic definition, a mass payout is a process where a business sends payments to multiple recipients at the same time. It’s a much more efficient and time-saving method compared to traditional practices of making individual payments.

For instance, imagine a global company that regularly contracts freelancers – say, content writers in the United States, graphic designers in France, and software developers in Japan. The company needs to pay each freelancer for their work at the end of the month. Instead of going through the tedious process of setting up and sending multiple individual international transfers, the company can initiate a single mass payment action so that all their freelancers get paid in one go.

What are Mass Payouts with Wise Business?
Wise offers two kinds of mass payouts, which includes batch payments and the Wise API
Batch payments offer the chance to send up to 1000 invoices in a single click
The Wise API gives businesses the chance to automate and schedule mass payments
One thing that separates Wise in mass payouts is that these features come free with your business account
Most importantly, if you're sending international mass payouts, then Wise could help. We offer the mid-market exchange and transparent costs, which has attracted over 16 million users to hold, receive, and send money with Wise and save along the way

Want to make mass payouts at easily and at low cost?

Get a Wise Business account >>

Trustpilot: 4.3/5 average rating - Excellent¹
No minimum balance required and no monthly fees

What are the steps in a mass payout?

Let’s check out the steps involved in bulk payouts in a little more detail.

1) Figure out what kind of payments you need to make

In general, there are two broad payment categories: domestic and international. Domestic payouts involve sending money within the same country, while international payouts involve sending money overseas. You’ll want to have a strong understanding of your business operations and relationships to figure out what sort of payments you’ll be making.

If your company operates strictly within the country and you deal with suppliers, employees, or other businesses in the same region, your business will only need to handle domestic payments. For example, a local restaurant sourcing their ingredients from local farmers and suppliers.

Businesses with a broader reach, like ecommerce sites that handle multiple sellers worldwide or remote startups that hire staff from different countries, will definitely require international payments. Payouts like these involve many currencies and some with complexities, such as exchange rates and international transaction fees.

It can be tough to send money overseas. Here's an example of how Wise Business helps you break it down:

2) Make sure you have the correct payment data

Since mass payouts rely heavily on automation, having the right payment data isn’t something you can compromise on. Incorrect information could lead to failed payments, lost revenue, and potential damage to your business relationships.

A good idea would be to have all your payment data for each recipient, such as their name, bank information, account number, and for international transfers, SWIFT or BIC codes, in an Excel document.

#3) Choose a mass payout solution

The mass payout solution you choose will make a huge impact on the ease, efficiency, and cost-effectiveness of the payment process. You need to make sure that the solution can handle the volume of payments you need to process and can do both domestic and international transfers if that’s something you need.

While some providers charge a flat fee per transaction, others might take a percentage. So be sure you’re picking one that offers the most value within your budget.

And that’s not all – the platform should be user-friendly so that your team is comfortable using it and won’t run into any hiccups.

4) Upload recipient data

As mentioned, it’s often a smart idea to have all the necessary payment details ready in a spreadsheet. Most payout solutions will offer the option to upload a file and allow you to review the data to make sure everything looks as expected. The more careful you are in preparing and uploading your recipient data, the smoother the mass payout process will be.

5) Specify payment amounts and schedule

This step essentially involves deciding how much each person is to be paid and when. Whether you’re paying freelancers for their services, affiliates their commission, or suppliers for products, the amounts need to be exact. You also need to establish a payment schedule, which might be bi-weekly, monthly, or even after a project is completed.

Having an agreed-upon schedule that is predictable and regular can help build trust with your professional relationships.

See the Best Banks for Small Businesses >>

6) Approve payments

After you’ve set up your payment data and schedule and put the required information into the platform you’ve chosen, it’s time to give the green light for funds to get sent out. Depending on the payout system, approval might be a manual check-and-confirm process or an automated approval process. A manual review will let you catch any human errors, while an automated process will have the preset rules catch errors for you.

7) Processing the payment

Now, the mass payout platform takes the wheel and transfers the funds from your business account to your recipients. It’ll typically use automated clearing house (ACH) payments for domestic transfers or wire transfers for international ones, following the schedule you’ve established and sending the right payment as specified. This way, you won’t need to manually send out an individual payment every time one needs to be made.

A useful feature that a payment platform should have is some form of payment status tracking, so you can see if a payment has been successful or if there are any issues.

8) Communication and notifications

Right from the start, your recipients should know what to expect – how much they’ll be paid, when, and through which medium. While you’ll want to have a payment tracking system for yourself, your recipients can benefit from notifications that tell them when a transfer has started and when it has been delivered. This proactive communication benefits both parties.

9) Reconciliation and reporting

Reconciliation is about comparing your financial records with your bank statements or payment provider’s records to see that all transactions match. It’s a good way to identify and fix any discrepancies, such as missing payments, double payments, or incorrect payments.

Modern mass payout solutions typically offer easy-to-understand reports that also provide insights into your payment patterns and trends to help identify areas to improve on. Accurate reporting is also important for regulatory compliance and tax season.

10) Payment analysis (Post-mortem)

Payment analysis involves evaluating the entire mass payout process after it’s all been said and done. It’s crucial to figure out what went well and what needs improvement.

The first step is to examine transaction success rates, reviewing whether all payments were processed properly. Next, the efficiency of the process – how much time did it take to pay your recipients? And, of course, what was the feedback from the recipients – did they face any issues? Lastly, consider whether you stayed within your budget for processing fees.

Benefits of Mass Payouts

Now you know what mass payouts are and how they work, but why should your business consider transitioning to this model? There are a whole host of benefits that come with implementing these digital payouts, much more than just sending multiple payments at once. Let’s take a look at the advantages that mass payouts can provide.

Saving time and creating efficiency

The most obvious and arguably the biggest benefit of mass payment options is the sheer amount of time and effort that it saves. Businesses can process hundreds or even thousands of payments simultaneously, transforming what could be a labor-intensive project into a one-click task. The time saved can be funneled back into focusing on your business's core operations.

Scaling partner payments

As your business grows and expands, it's likely the number of partners you pay also increases. Processing these payments individually can become logistically complicated, and the time consumed could hinder growth. With a mass payout system in place, businesses can manage an expanding list of payees and their payments within the same system. You can simply add new payee data into the system, and the platform takes care of the rest, so your payments scale with your business.

Enhanced security

Cyber threats continue to be a growing concern, so the enhanced security offered by mass payout systems is a big benefit.² Reliable mass payout platforms use robust security measures to protect sensitive financial data and guard against fraudulent activities.

These may include advanced encryption technologies, multi-factor authentication, and adherence to global payment security standards, to name a few. With a single secure pathway for multiple transactions, you reduce the points of vulnerability that come with individual payments.

Cost-effectiveness

When it comes to business operations, optimizing costs is always key. By putting multiple transactions into a single batch, mass payouts can reduce transaction fees, especially when compared to the cost of processing each payment individually. The time-saving aspect of automating these payments also translates into monetary savings, as you're able to allocate resources more productively elsewhere.

Wise Batch Payment Benefits
Make fast, low-cost payouts to all your customers, freelancers, employees, investors, and suppliers around the world.
Track your mass payouts in real-time, with secure access to online reporting.
Hold over 40 currencies — and switch between them when the exchange rate looks good.
We automatically repair problematic payments, including rejected ones.
Our multilingual team is here for you, and everyone you pay — by phone, email, and chat.
Bank-grade security: We’re end-to-end encrypted. This means that all your data, and money, is secure for you and your customers.
Big Advantage: This tool comes free with the Wise account
Wise Business is a business account that lets you send, spend, and receive multiple currencies with the mid-market exchange rate.

Want to make mass payouts at easily and at low cost?*

Start making Batch Payments >>

Trustpilot: 4.3/5 average rating - Excellent¹
No minimum balance required and no monthly fees

Global reach

If you’re a global business, you’ll need a global mass payments solution that transcends geographical boundaries--and that’s exactly where mass payouts stand out. With the ability to facilitate international payments in multiple currencies, mass payout systems extend your business's reach. A good global payout solution will handle currency conversions efficiently and transparently to make sure your recipients receive the correct amount every time.

Improved tracking and accuracy

Accuracy is paramount in finance, and tracking plays a huge role in maintaining it – two areas where mass payouts excel. Using a mass payout solution often includes access to tracking tools for businesses to monitor every transaction in real time. You can easily identify the status of any payment, whether it's pending, processed, or delivered.

Having a precise record of every transaction also simplifies financial auditing and accounting, streamlining your business operations further.

Compliance and risk

The regulations surrounding global payments can be strict, so maintaining compliance can get complicated. The beauty of mass payout systems is that they’re designed to automatically adhere to a variety of international compliance standards and regulations. They conduct diligence procedures, such as Know Your Customer (KYC) and Anti-Money Laundering (AML) checks, ensuring your transactions remain compliant without additional workload on your end.

Additional benefits of a mass payout solution

Here are a few additional benefits of a mass payout solution beyond what we've already discussed:

User-friendly interface: Many mass payout solutions provide intuitive interfaces that make it easy even for beginners to navigate and process payments.

Customization: These systems often offer customization options to meet specific business requirements, whether it’s custom payment schedules, unique recipient categories, or distinct payment methods.

Integration: They can often be smoothly integrated with existing business software or systems to improve workflow.

Customer support: Many solutions come with dedicated customer support in case you need to resolve any issues immediately.

Mass Payout Solutions and Services

If you’re ready to explore the solutions and services out there, this section will guide you through some top choices that might be suited to your business needs.

Wise Business Mass Payouts

Wise Business has a powerful free mass payout tool designed to simplify your business transactions globally. It allows you to send mass payments to over 80 countries in more than 50 different currencies directly from your Wise Business account. And what’s more, you can seamlessly track your payments from when they’re sent to when they’re received.

A standout feature of Wise is its commitment to providing mid-market exchange rates without hidden mark-ups. This, combined with its transparent pricing model, makes Wise an attractive platform for businesses that want cost-effectiveness.

When it comes to fees, Wise charges a fixed, low fee for international transfers, and the price scales with the size of your payment. This means the more you send, the less the fee percentage is.

Want to make mass payouts at easily and at low cost?

Get Business account >>

PayPal Mass Payment

PayPal, a household name in online payments, also provides a mass payment solution known as PayPal Payouts. This lets businesses send multiple payments in one batch to any PayPal account across the globe.

Equipped with an easy-to-use interface, you can send payments to up to 5,000 recipients in a single batch using either the PayPal interface or an API.

When it comes to fees, PayPal typically charges a fixed fee per domestic transaction, with the rate varying for international transactions depending on the recipient’s country. Additionally, it's worth noting that while the sender covers the transaction fees, users may be subject to conversion fees when withdrawing or spending the funds in a different currency.

Learn More: How to pay contractors through PayPal

Payoneer Payouts

Payoneer is a global payments platform that offers payout services suitable for businesses of all sizes. Their mass payout solution enables you to send payments in over 150 currencies and 200 countries.

It’s a versatile platform that comes with a diverse range of payout methods and the ability to receive funds from marketplaces and clients worldwide.

Payoneer's fee structure varies. Local bank transfers in the same currency are typically free, while fees apply for cross-border payments and currency conversions. The foreign exchange rate applied to these transactions is up to 2% above the mid-market rate, and individual users may also face fees when withdrawing funds.

What are API payouts?

Application Programming Interface (API) payouts involve a software intermediary that lets two applications communicate with each other to make payouts. In the context of mass payments, API payouts create an automated process so your business system can directly interact with the payout platform to make, manage, and track payments.

Instead of manually logging onto the payout platform, you can handle transactions right from your business system. With API payouts, you also get all your reports, reconciliations, and notifications done automatically.

Wise API Benefits
Automate invoice payments, recurring transfers, standing orders, or payroll
Generate payments from invoicing software
Get real-time notifications on platforms like Slack
Add Wise as a disbursement option to your website
Simplify expense reporting
Track exchange rates and automate conversions
Businesses big and small now can get access to the same platform that powered our own business — which saves our customers over a billion every year. Without involving us
Big Advantage: This tool comes free with the Wise account
Wise Business is a business account that lets you send, spend, and receive multiple currencies with the mid-market exchange rate.

Want to make mass payouts at easily and at low cost?*

Get the Wise API >>

Trustpilot: 4.3/5 average rating - Excellent¹
No minimum balance required and no monthly fees

When should businesses use mass payouts?

The need for mass payouts can depend on numerous factors, such as the size of your company, the nature of your business, or the markets you're serving. In this section, we’ll go over when it might be time for a business to consider using mass payouts.

Contractor payments

If your business frequently engages with contractors, processing multiple payments to individuals on varied schedules is commonplace. Adopting a mass payout solution will ensure timely payments to contractors, keeping them happy.

Payroll processing

The task of managing payroll can be a big task, especially for businesses with a lot of staff or those employing people in different countries. A mass payout solution will let you automate the payroll payments to all your staff members in one go across multiple currencies if needed.

Vendor and supplier payments

Vendor and supplier payments are a vital part of any business that deals with regular procurement of goods or services. If your company frequently pays multiple suppliers or vendors, there's a huge benefit to implementing a mass payout solution. Using mass payouts means smoother operations, less room for payment-related disputes, and potentially better negotiation power with suppliers thanks to prompt payments.

Affiliate marketing

Running an affiliate marketing program often requires dealing with a lot of partners who need to be paid their commissions regularly. This could mean multiple transactions, often across different countries and currencies. Incorporating a mass payout solution streamlines this process by automating these payments.

Subscription-based services

If your business operates on a subscription-based model where you need to process refunds or cashback, managing these on an individual basis can be taxing. The influx of transactions can be particularly high if a subscription period ends or when you roll out any promotional offers. An automated system makes sure your subscribers receive their pay on time, enhancing the customer experience and building their trust in your services.

Global workforce payouts

With a global team distributed across various regions, handling payroll could prove to be a challenge. No matter where your team members are located, mass payouts allow you to pay them all simultaneously, accurately, and in their local currencies.

The Bottom Line for Mass Payout Software

When you’re doing business in the modern day, efficiency, accuracy, and global reach are more than just buzzwords – they're now essentials for running a successful business. Adopting a mass payout solution can help businesses navigate all of this. Automating and simplifying multiple payments to various recipients can help businesses save time, reduce errors, and focus more on their growth.

Regardless of your industry – ecommerce, technology services, affiliate marketing, or subscription services – using mass payout solutions is a big step toward smart finance management.

Why Businesses Love Wise

If you’re making international payouts, Wise Business offers international transfers at a low cost, using the transparent mid-market rate.

Additional Benefits of Wise:
Clear and transparent rates and bank-level security
Instant payments
Integrate your accounting software with Wise Business
Receive funds like a local - a one time fee means you get paid at no extra cost in EUR, GBP, USD, CAD and more
Send to 70+ countries and hold money in 40+ currencies

Start making payments
with Wise Business >>

Free account opening for US-based businesses
Over 300k+ businesses customers use Wise globally

---

Please see Terms of Use for your region or visit Wise Fees & Pricing for the most up to date pricing and fee information.

Wise is not a bank, but a Money Services Business (MSB) provider and a smart alternative to banks.

Sources:

1. https://www.trustpilot.com/review/wise.com
2. https://www.mckinsey.com/capabilities/risk-and-resilience/our-insights/cybersecurity/cybersecurity-trends-looking-over-the-horizon