As companies continue to embrace digital transformation and remote work, you can expect to see even more growth in the mass payments space. The current state of global payments is truly dynamic.
As companies continue to embrace digital transformation and remote work, you can expect to see even more growth in the mass payments space. The current state of global payments is truly dynamic.
Cross-border payments have become an essential component of many modern business models, especially for brands working with freelancers, contractors, affiliates, influencers, and creators. International payment platforms offer quicker, more cost-effective, and secure ways to pay partners.
In this article, we explore two popular brands in the global payments space: Tipalti and PayPal. We’ll examine the main features, compare the capabilities of each platform, and discuss which platform will work best for all of your global payments needs.
What Does Tipalti Do?
Tipalti is a cloud-based international payments platform that allows a business to manage mass payments across the entire payment operations cycle. The system focuses on streamlining various financial processes related to payees, including mass payments.
Tipalti is a robust solution that also covers everything from partner onboarding and management to executing global payments, strengthening financial controls, and reconciling payables data across a multi-entity organization.
Tipalti Product Capabilities Overview
Score 8.3 out of 10 on Trust Radius
The Tipalti platform has a 99% customer retention rate and offers capabilities like:
Self-Service Portal
Tipalti offers a multi-language, self-service portal for easier partner management with a multitude of payment methods. The payment processor validates banking and payment data using real-time workflows and 26,000 global banking rules to reduce human errors.
The portal is accessible 24/7 for greater visibility into payments. Partners can also receive IPNs (instant payment notifications) for a more proactive approach to transactions.
Financial Controls
Businesses can scale faster using their Tipalti account by strategizing global partner payments with compliance, operational, and financial controls. A company can securely pay thousands of partners in just minutes, whether it’s a global or local bank transfer.
Tax Compliance
Tipalti guides partners through W-8 and W-9 series tax forms and helps a business collect and validate IRS and VAT tax IDs. They offer a KPMG-approved tax process allowing companies to generate 1099/1042-S tax preparation reports and remain in complete tax compliance.
Self-Billing
The Tipalti AP automation payment system offers a self-billing process that enables a business to create an automatically generated invoice from payees with multiple approval combinations
Global Reach
An organization can send global payments to 196 countries in 120 currencies, using 50+ different payment methods. Effortlessly trigger payments to your partner base with performance analytics derived from performance marketing systems.
Tipalti also allows a business to integrate detailed, accurate transaction reports with popular ERP systems.
Tipalti transforms partner payments for fast-growing, digital-first companies. Every freelancer, streamer, developer, creator, affiliate, or publisher can count on you to offer a best-in-class partner experience; while you can count on saved time, increased resources, and sustained working capital.
Tipalti Pricing
Tipalti’s pricing model is designed for scalability to fit your business needs as you grow. Add capabilities as you go, like W-8 tax forms or multi-entity payables.
What Does PayPal Do?
PayPal is a widely recognized online payment platform that provides features for sending and receiving funds electronically. The brand facilitates everything from e-commerce transactions to international payments, peer-to-peer payments, payment gateway services, mobile payments, seller protection, and much more.
PayPal also offers a mass payment service called PayPal Payouts. This enables a business to send money to multiple recipients at the same time.
To use PayPal Payouts, you need a PayPal Business account that is linked to a bank. Then you must formally request access.
PayPal Product Capabilities Overview
A score of 8.1 out of 10 on Trust Radius
How does PayPal work for mass payouts? The system has over 435 million active PayPal accounts worldwide, in 156+ markets. Top capabilities for mass payments include:
Streamlined Mass Payouts
PayPal Payouts enable a business to send payments to multiple recipients at once, streamlining the disbursement of funds. All you need is an email, mobile number, Venmo, or PayPal ID for each recipient. Set up payments with the Payouts API, use Payouts Web, or manually upload a file via SFTP.
Global Reach
PayPal Payouts supports global payments, enabling companies to send money to recipients in various countries. The system supports multiple currencies and even allows payments to be made in a recipient’s local currency.
You can make payouts to 156+ markets worldwide in 23 currencies. When you pay in USD, CAD, EUR, AUD, MXN, and GBP, PayPal Payouts will automatically convert the funds for certain local currencies.
Developer-Friendly API
PayPal Payouts provides APIs that everyone from startups to large enterprises can use to integrate into their own systems. These APIs enable programmatic control of the payment process, so companies can automate and customize their mass payout workflows.
Tracking and Reporting
Track the status of payments and easily obtain transaction details. Companies can use PayPal Payouts to monitor the progress of payments, generate reports, and reconcile transactions as needed. Review and track each payment from a single dashboard, download transaction details, and view your entire mass payment history.
Security and Compliance
PayPal mass payments incorporate the brand’s security measures to help protect sensitive financial data and ensure secure transactions. The system also adheres to relevant regulatory and tax compliance requirements in the countries where it operates.
PayPal Pricing
There are no monthly SaaS fees to use PayPal Payouts. It is free for both payers and payees to set up a PayPal account. The cost to send mass payments through PayPal Payouts is typically 2% of the transaction amount. However, a flat rate is charged when using the payouts API.
PayPal fees are structured as follows:
- US Payouts – 2% of total transaction amount (not to exceed the maximum fee cap)
- US Payouts (using the Payouts API) – Flat Rate (see fee table)
- International Payouts – 2% of total transaction amount (not to exceed the maximum fee cap)
Fees are always paid by the sender. Payout recipients do not pay a fee if they receive money in their preferred currency. If they receive a payment in another currency, they have the option to convert into their selected currency for a fee.
| Functionality |  |  |
|---|---|---|
| *Limited functionality | ||
| Global Payments | Pays to 196 countries in 120 currencies with global payment methods that include PayPal, global ACH, wire transfer, US ACH, prepaid debit, and check. |
Payouts to 156 countries in 23 currencies using PayPal or Venmo only.
|
| Partner Onboarding | Branded, self-service portal can be embedded into your website via iFrame. Payee choice of preferred currency & payment method. 26k+ rules validate payments. Screening against OFAC/SDN lists during onboarding and before each payment. | PayPal branded onboarding and payment experience. No white labeling or payment validations. No OFAC/SDN screening.
|
| Mass Payment Communications | White-label, payment status emails, and 24/7 partner hub portal to reduce inquiries. | PayPal branded email notifications when payment-related events occur, transaction history, and mobile app notifications. |
| Tax Compliance | KPMG approved tax engine, collect tax forms like W-9s and W-8s, validate IRS and VAT tax IDs, generate 1099 and 1042 prep reports with auto-calculated withholdings, plus e-filing capabilities. | PayPal sends special 1099-K form. Detailed payout history can be exported & uploaded into other systems for tax purposes
|
| FX Solutions | FX conversion visibility and advanced solutions like intercompany transfers and FX hedging. | Currency conversion, and multi-currency accounts (MCA). No advanced FX capabilities like intercompany transfers or hedging. |
| Integrations | Prebuilt performance marketing system integrations, API sync with major ERPs, pre-built connectors with no-code strategy for other ERPs. REST APIs accompanied by documentation & developer hub for tailored integrations
| Strong APIs and performance marketing system integrations. Weak / lacking ERP integrations. |
| Customer Support | 98% customer support satisfaction rate with US-based support and avg. email response under 2 hours. | Reviews online report slower response times and a lack of general support with frozen or delayed funds. |
| Safety and Security | Blue-chip bank network with protected funds for secure payment, encryption, Tipalti Detect for payee monitoring, global compliance, and fraud detection. | Secure encryption, Buyer and Seller protection, PCI compliance, two-factor authentication, email, and transaction monitoring. |
| Multi-Subsidiary | Manage multiple entities/subsidiaries/brands with different payout processes and workflows from a single Tipalti instance and gain a consolidated view at the HQ level. | PayPal Payouts does not currently offer multi-subsidiary capabilities. |
How are you paying global partners? Not as easy as you thought?
Click here to find out what the top global payment methods are right now.
Which Solution Works Best for Your Business (and Why)
You need a strong global payment processing tool to scale your payment automation and boost online business. However, purchasing this type of software can get expensive and takes a serious commitment.
Thus you should take time during this process. Especially when it comes to mass payments. Here are a few scenarios to help you decide which system works best:
When to Choose Tipalti
You want to provide payees with a best-in-class payment experience.
A company chooses Tipalti when they want to provide a branded, best-in-class payment experience for partners. Full transparency is provided into fees via payee FX. The solution also offers partner-friendly options like fee splitting to motivate partners to adopt safer, more efficient payment options.
Payments are delivered directly to payees anywhere between the same business day up to three business days. On-time, reliable, and accurate payments will facilitate a more positive payment experience, strengthen your reputation, and validate partner relationships.
Tipalti also delivers branded, proactive payment status notifications keeping partners informed of when payments are processed, and when (and why) anything fails. Partners can also view a complete payment history, freeing up hours your team spends on answering inquiries. If additional data (like tax forms) is required to become payable, partners are immediately alerted.
If partners are only offered PayPal, they’ll need another solution for the US and global ACH, wires, prepaid debit cards, and checks.
You want world-class customer support.
Tipalti has a 98% customer support satisfaction rate and offers a single point of support for all payment methods. They assign a Dedicated Customer Success Manager (CSM) to each client who serves as the main point of contact and is responsible for understanding all of your business needs, providing guidance, and immediately addressing issues.
Additional customer support services include:
- Online support center with knowledgebase and FAQs
- Email and phone support with timely responses
- Training and onboarding for a shorter learning curve
- System health monitoring with proactive resolutions
PayPal users typically have to manually troubleshoot processes. There is no easy way to identify when a payment has failed. The payer needs to check if the email is correct, and the recipient needs to ensure the email address has been confirmed. There are fewer dedicated resources to help out PayPal account holders.
You want an end-to-end payment solution.
Tipalti enables a business to put its brand front and center, with a white-labeled end-to-end payment experience.
It starts with onboarding, where partners are guided through preferred payment and currency selection. Then, banking data is automatically validated against 26,000 global rules. This works to minimize errors and streamlines global payments.
Proactive emails are then sent out, reducing the time spent handling inquiries. In comparison, the partner experience with PayPal emails is generally solution branded. There are no onboarding or payment reconciliation functions. They do not send out payment status emails or inform when transactions fail.
Additionally, the PayPal account balance can only be used to send mass payouts, and pre-funding the account can take anywhere from 5-10 business days. The FX conversion rates are variable and based on currency (sometimes as high as 4%).
When to Choose PayPal
You want to work with a name-brand company with a global reach.
PayPal is one of the most trusted name brands for payment processing in the world. They have over 435 million active accounts and operate in 156+ global markets.
When you pay in USD, CAD, EUR, AUD, MXN, and GBP, PayPal will automatically calculate the conversion. You can make payouts in 23 different currencies, and the name is recognized by most businesses around the world.
Tipalti is also a well-recognized name brand, making this a tough choice. The payment system is a leading midmarket solution with over 4 million global payees and +3,000 customers worldwide, including brands like Twitter, Uber, and Roblox.
Tipalti has a 99% customer retention rate, 98% customer support satisfaction, and strong reviews, with multiple awards and accolades. When it comes to global payments, you can make mass payments in 120 different currencies to 196 countries using the Tipalti solution. This allows you to reach more people than PayPal.
You do not have any finance automation needs outside of global payment processing.
PayPal is relatively straightforward, and although the system offers a feature for mass payouts, there is no real end-to-end solution to speak of. You cannot empower partners with a self-service portal, reconcile payments, or automate billing. It’s a simple tool meant for easy batch payments. If this covers your business needs, then PayPal may be a good fit.
However, whether you deal with domestic or global partners, maintaining tax compliance and strong financial controls is essential for business success. Tipalti offers a guided digital tax form collection process that meets all IRS requirements, with 1,000+ validation rules.
For non-US payers, local and VAT tax ID collection is available in 49 countries with over 3,000 built-in validation rules to help prevent ID errors and issues.
For European countries, Tipalti supports document collection so partners can provide additional data when needed and self-billing invoices where partners and/or payers must approve invoices before payments can be processed.
You have simple integration and FX needs.
If you are a single entity or small business with less payment complexity, PayPal may be your best choice. Although they offer some performance marketing integrations, the integrations are not as robust as Tipalti’s. Unlike Tipalti, PayPal offers limited ERP integrations.
PayPal also has limited FX capabilities. It will convert your currency when it comes to certain countries, but there are limitations. Using Tipalti, a business can save time and money on currency conversions and manage intercompany transfers. FX Hedging also helps to reduce currency volatility risk.
The Tipalti platform has a multi-entity architecture that enables a business to coordinate and manage payables across multiple entities. This includes capabilities like payment methods, independent branding, tax onboarding flows, payee communications, reporting, reconciliation, and modules per entity.
Expand PayPal Capabilities with Tipalti
If you cannot decide on which system to use, you’re in luck because Tipalti integrates quickly and easily with PayPal. Tipalti is a trusted PayPal partner and helps you to enhance your B2B payment experience by offering PayPal as a payout option alongside other payment methods.
This enhanced integration enables greater control and messaging exchange with your partners on a more scalable, service-oriented architecture. Businesses with more traditional models can also easily add PayPal as a payment option for their partners and suppliers.
What Our Customers Say
With Tipalti, partner interaction no longer requires any bandwidth from our team. Photographers can change bank accounts or switch payment methods between PayPal, ACH, or wire transfers—it’s all self-service.
Nicole Smith | CEO and Founder, Flytographer
Tipalti’s mass payout platform was exactly what we wanted. Our main priority was to find a technology solution that could digitize tax collection, improve reporting capabilities, and centralize multi-subsidiary payouts in one platform.
Irene Altman Becklund | VP, Controller, Hims & Hers
I think 50% of the people we’re paying are outside of the U.S. Not having to deal with any added work or stress of having to know the tax and reporting implications in those various countries is super helpful. And the 1099 process for our finance team has been simplified as well.
Greg Kampanis | SVP Operations and Business Development, Omnia Media
Secure & Streamline Payables with Mass Payments
In today’s global, partner-based economy, your best-in-class mass payment ecosystem must offer a phenomenal customer experience. In order to attract and retain the best talent, you have to pay everyone on time consistently.
As competition continues to increase, businesses that rely on a digital-first, e-commerce, or marketplace model, must immediately prioritize partner satisfaction.
As more partners continue to take the lead, companies must find a way to cater to this new workforce. According to our recent research, 87% of partners experience payment issues, and 35% of them have stopped working with problematic platforms. Don’t be one of those!
Whether your company supports 20 or 2,000 partners, controls should be tight with technology that is ready to scale and manage hyper-growth. Effectively scaling your global partner payments begins with creating the best partner experience possible.
Get started with a free demo of Tipalti today.
