What Are Mass Payouts? Complete Guide for 2025

Whether it’s compensating freelancers, making mass payments for creators’ royalties, or managing affiliate commissions, the need for mass payouts has never been more prevalent.

Advancements in technology have ushered in a new era of mass payout solutions and payment services, offering unparalleled speed, convenience, and security. These innovative systems are transforming the way organizations distribute funds, eliminating the frustrations associated with manual processes.

In this article, we dive into the concept of mass payouts, examine the evolving landscape of automated payment solutions, and highlight the key benefits of adopting modern mass payout methods.

What are Mass Payouts?

Businesses use mass payouts to pay multiple recipients in a single batch, regardless of the payee’s currency, location, or payment method, rather than making one-by-one payments. 

When Mass Payouts Are the Right Fit

Mass payouts are ideal when you need to pay large groups of recipients—like freelancers, affiliates, or creators—quickly and cost-effectively. Unlike payroll or AP invoice payments, mass payouts are designed for high-volume, non-salary transactions across borders and currencies.

What to Consider

Mass payouts complement, but don’t replace, payroll systems or AP software for supplier invoices. The best approach is to use an integrated platform that supports multiple payment types, connects to your ERP, and handles global compliance.

With Tipalti, finance teams can manage supplier invoices and mass payouts in one place, eliminating the need for multiple siloed systems.

Common Terms

Mass payouts are also known as mass payments, batch payments, batch payouts, or bulk payments. 

Mass payouts occur in the procure-to-pay (P2P) process when businesses make batch payments to suppliers for invoice payment through accounts payable. Mass payout solutions are deployed beyond the use case of supplier invoice payments when numerous payees are preferably paid in large volume batches for non-invoice payments. 

Mass payouts involve efficient and streamlined distribution of funds to multiple recipients, such as employees, freelancers, creators, vendors, affiliates, claimants, or customers. 

Automating Mass Payouts

With the rise of automated digital payment systems, mass payouts have undergone a significant transformation. Businesses automating mass payouts replace paper checks and other manual processes to increase efficiency and reduce human errors, payment delays, and costs. 

Companies should automate mass payouts whenever they:

• Need to distribute funds to multiple parties 
• Streamline payment processes 
• Reduce overhead 
• Enhance operational efficiency 
• Build stronger relationships with employees, contractors, vendors, customers, or affiliates

Ease of use, payment methods, transaction fees, security, reporting, and integration capabilities are essential decision factors. 

Depending on a company’s business model and technical infrastructure, batch payment processing solutions may need to be integrated with performance marketing systems to tie performance analytics and data to mass payments directly. ERP integrations help to facilitate quick payment reconciliation and reporting.

Who Uses Mass Payouts?

Understand which businesses use mass payouts through use cases and real-world case studies that include issues and outcomes from using automated solutions.

Use cases

Mass payments are particularly popular with companies that process a large number of transactions on a regular basis, such as:

• Gig economy networks
• E-commerce platforms and retail
• Online marketplaces
• Adtech
• Affiliate marketing and influencers
• Businesses paying royalties to musicians or other creators 
• Refunds, rebates, and claims
• Multinational companies with a global workforce

These organizations must embrace an automated mass payout solution to meet the needs of their financial operations, improve business relationships, and foster a greater sense of trust and satisfaction with the payment process.

Mass payouts have proven particularly popular with tech-based companies that depend on low churn and partner retention. This requires swift affiliate and freelancer payments, tax compliance, regulatory risk assessment, and scalability.

Use case scenarios in which companies utilize mass payouts include:

Contractor Payments

Companies that engage independent contractors, freelancers, and gig workers can leverage mass payouts to compensate them efficiently.

Payroll Processing

Businesses with a significant number of employees can streamline the payroll process by automating salary disbursements. This eliminates the need for paper checks, reduces administrative overhead, and ensures staff payments are timely and accurate. Payroll processing uses specialized software. 

Vendor and Supplier Payments

Brands that work with multiple vendors can deeply benefit from an AP automation mass pay system, using it to streamline payments for goods and services provided. This enhances supplier relationships and improves overall cash flow management.

Affiliate Marketing 

Companies that use partnership affiliate marketing programs often need to distribute commission payments and affiliate payments to numerous parties based on performance. Mass payouts with a choice of payment methods enable quick and accurate payments, ensuring affiliates are incentivized to promote the brand effectively through referrals or other actions.

Subscription-Based Services

Companies that provide subscription-based services and pricing need to collect recurring payments from a large customer base. Mass payout systems help to automate subscription fee collections and ensure a more seamless customer experience.

Global Workforce Payouts

Organizations with a global workforce, like remote employees or international contractors, can use a mass payouts feature to overcome the complexities of local bank transfers and cross-border payments. This feature enables cost-effective transfers and accommodates different currencies and payment methods.

Additional Scenarios that Require Mass Payouts

• Customer rebates and refunds
• Crowdfunding and fundraising
• Event and contest prize payouts
• Insurance claims, legal claims, and reimbursements

Real-world scenarios

Two Tipalti customer stories highlight the actual use of automated mass payouts.

Symphonic- Tipalti Mass Payments Case Study 

Symphonic pays global music royalties monthly for 100+ clients and 500 thousand artists worldwide. The company switched from manual processes to mass payout automation. Symphonic uses Tipalti mass payments software integrated with QuickBooks accounting software. QuickBooks alone doesn’t offer efficient methods for paying numerous royalties. 

Symphonic Distribution found Tipalti’s mass payout solution that significantly improves its payout efficiency, handles KYC requirements (Know Your Customer), streamlines tax form data collection, enables royalty sharing, and ensures client data security. Tipalti’s mass payments solution enabled Symphonic to expand to new geographic areas. 

We serve hundreds of thousands of clients—some in other countries, who need payment in local currency—and we’re paying them each month for earnings across 200 streaming platforms. That’s difficult enough, but when we added SplitShare, where every payment might be distributed to many collaborators, finance automation became a must-have.

—Jorge Brea, Founder and CEO, Symphonic

Proedge- Tipalti Mass Payments and AP Automation Case Study

Proedge is a Tipalti mass payments and AP automation customer with over 100 employees in the AdTech industry, utilizing Tipalti integration with NetSuite ERP. Proedge utilizes Tipalti automation software to automate manual tasks, handling hundreds of weekly transactions without requiring an increase in headcount. 

We do a lot of high-volume transactions as part of our business for the publisher network. Having the ability to do big batches of payments with Tipalti is super helpful. Additionally, our acquisitions have become more sophisticated and more globally diversified. [Tipalti] can quickly spin up a new subsidiary, and nothing will go missing.

—Oliver Shaw, SVP, Prodege

How Mass Payouts Work (Step-by-Step)

While payment processing remains the core component of any mass payout program, making mass transfers is a multi-step process that goes far beyond the simple remittance of money. This is why a basic banking interface or interface with an e-wallet (e.g., PayPal, Payoneer) is insufficient.

Steps in the mass payouts process include:

1. Onboard and verify payees
2. Validate payment details and amounts
3. Fund and authorize 
4. Execute payouts 
5. Notify payees of payment status
6. Track, reconcile, and report

1. Onboard and verify payees

Self-service payee onboarding and verification includes digitally completing required W-9 or W8 tax forms, TIN matching, contact information, KYC (know your customer) verifications, and a payment method choice with details.

Recipient details may include (but are not limited to):

• Name and address
• Bank account information
• Email address
• Digital wallet ID
• Tax forms

2. Validate payment details and amounts

Validate payment details and amounts to help prevent fraud and errors. This step includes automated processes to detect duplicate payouts and make format checks to flag exceptions requiring follow-up. 

3. Fund and authorize 

Use cash flow requirements information for cash forecasting to enable funding and timely authorization of mass payouts. Role-based approvals (ensuring separation of duties for internal control) are applied, following company policy. 

Review and approve payment details for the planned batch payment. This approval process step applies to the total amount, payment schedule, and recipient information to help ensure the mass payout is accurate and complete before sending. 

Some mass payment solutions offer multi-entity capabilities, incorporating multi-entity ERP functionality. An advanced FX solution (Tipalti Multi-FX) allows you to centralize funding and payouts for all subsidiaries through a virtual payment account without setting up an international regional banking network. 

4. Execute payouts 

Make approved global mass payouts in efficient, large multi-currency batches through a mass payout solution with API/CSV integration to ERP or accounting software and performance marketing systems. These payments use different payment rails, depending on the payment method. 

The mass payout solution you choose will start processing the payment according to the schedule. It disburses funds to the recipients using their preferred payment method, such as global ACH, e-wallets, wire transfers, prepaid cards, and other supported options.

5. Notify payees of payment status

Automated payment status communication is a critical component of a mass payment workflow.

Recipients may be automatically notified of the payment via email, SMS, or through another chosen form of communication. Notifications can include payment details, instructions for accessing funds, and transaction references.

6. Track, reconcile, and report

Track payments to payees to record the transactions (with audit trails) and generate 1099/1042-S preparation reports. Reconcile batch payments to subledgers via ERP integration with syncing. 

Your mass payout solution should provide comprehensive reporting capabilities, enabling you to track the payment status of every transaction. This allows real-time monitoring and helps identify failed transactions or discrepancies.

Benefits of Mass Payouts

Because mass payments are made online using streamlined workflows (either through a business account or an instant digital wallet), they help a business save time, money, and resources. Consider some of the advantages of batch payment processing on a grand scale:

1. Time and team efficiency

With mass payouts automation, enable a more efficient payment process with fewer touches by using large batches for simultaneous payments to many recipients vs. one-off payments.

Mass payouts eliminate the need for time-consuming, manual tasks like writing checks, enabling companies to allocate resources more efficiently and focus on core operations. By automating key mass payment processes, staff has more time to focus on value-added tasks, rather than routine manual ones. 

2. Cost control and FX 

Mass payouts significantly reduce administrative overhead and payment costs, contributing to return on investment (ROI). 

Cost control opportunities include:

• Savings from automated vs. manual processing hours at the average payout staff rate  
• Less time resolving bank errors
• Reduction in resubmission fees for payouts
• More cost-effective global payment methods
• More competitive currency conversion rates 

For mass payouts, refer to the Tipalti payment error cost calculator, linked below. For supplier invoice payments, view Tipalti’s invoice processing and payment calculator. 

By streamlining the mass payment process and reducing manual labor, businesses can save costs associated with doing things by hand (i.e., printing and mailing checks). With mass payout automation, companies may also reduce the need to hire additional staff.

Manual payment processing is prone to errors, such as entering incorrect payment amounts or sending it to the wrong recipient. These mistakes can result in additional costs like payment reversal fees, chargebacks, and customer disputes. A mass payment solution minimizes these errors and reduces the risk of expensive mistakes.

3. Accuracy, compliance, and risk

Mass payouts automation increases accuracy, improves global regulatory and tax compliance, and reduces fraud risks. 

For tax compliance, the best mass payments software collects tax forms (including W-9 or W-8 forms) during onboarding, validates payees with TIN matching, computes backup withholding, and provides 1099/1042S tax preparation reports. 

It automates global regulatory compliance with “No-pay list” screening (including OFAC) and KYC/AML checks for Know Your Customer and anti-money laundering purposes. Advanced options include behavioral payee screening to detect and prevent fraudulent payees. 

4. Recipient experience

Businesses expect a frictionless and positive experience for payees when mass payouts are used, which attracts quality partners and reduces churn. Modern mass payments software delivers these outcomes, with faster payments in preferred local currencies, a choice of payment methods, and payment status transparency for recipients. 

5. Measurable outcomes

Measurable outcomes from mass payouts include:

• Improved operational efficiency, measured by reduced staff time and cost reductions
• Improved global regulatory and tax compliance with fewer penalties for non-compliance
• Fraud risk and error reduction
• Instant automated mass payment reconciliation to accelerate the accounting close by days
• Multi-entity scalability, enabling global organic growth and acquiring new entities

Global Coverage and Payment Methods

A mass payout solution with multiple payment options simplifies cross-border payments to different countries. Multi-currency mass payout solutions will help your business comply with global regulations, reduce currency conversion fees from USD to another currency, and facilitate seamless international payment transactions in local currencies.

Countries, currencies, and methods Tipalti supports

Tipalti provides mass payouts using 50+ payment methods to 200+ countries and territories in 120+ currencies. 

Delivery windows and typical exceptions

The payout delivery window for global payments depends on the payment method and the payee country’s banking system, typically ranging from instant/same day for digital wallets to 1 to 5 business days. International wire transfers may take longer to receive, with intermediary banks involved. 

Reasons for global payment exceptions, causing non-receipt by the payee or delays, include:

• Incorrect or missing reference or payment information (such as IBAN or SWIFT/BIC code)
• The beneficiary’s name isn’t an exact match with the bank account name
• The recipient’s bank doesn’t accept a foreign currency for the payment
• Fraud suspicion
• Doesn’t comply with KYC/AML, sanctions, or other regulations

Fees and Limits (Transparency Snapshot)

Mass payouts have transaction fees that vary by payment method and domestic vs. international payment. System volume limits for batch processing and whether a subscription cost applies will vary by mass payment solution. 

How fees typically work 

Mass payout transaction fees work by charging transaction fees for domestic and international wire transfers, credit card payments, ACH, and digital wallet fees, such as those charged by PayPal. Cross-border payouts have currency conversion fees that may contain a markup. Miscellaneous fees may also apply. 

International wire transfer fees are more expensive, with banks charging about $50. Fees are charged by both the sending and receiving parties’ banks and any intermediary banks involved. 

Batch and API limits

Batch and API call limits vary depending on the mass payout provider’s system and the payment methods used. Before selecting a mass payout system, determine its transaction volume limits to ensure that it fits your business requirements. In some mass payment systems, payout batches may include up to thousands of payment transactions. 

Total cost of ownership

The total cost of ownership of a mass payout solution includes any applicable SaaS subscription fees, implementation and training consulting services, transaction fees, and currency conversion fees with markups. Some mass payment solutions charge miscellaneous fees. Obtain a quote.

Services vs. Solutions (What to Evaluate)

Mass payouts can be handled by (1) payout services or (2) payout solutions:

• Services (good for basics): initiate payments, often limited to domestic corridors; manual onboarding/compliance; CSV exports; minimal reconciliation.
  
• Solutions (built for scale): self-service onboarding (W-9/W-8, KYC), automated OFAC/AML/DAC7/VAT, broad global coverage (countries/currencies/methods), REST APIs + prebuilt ERP integrations, multi-entity and advanced FX/hedging, subledger sync and audit-ready reporting.

Use the comparison table to confirm fit, then run this quick check. 

Do you need:

• global coverage
• automated compliance
• ERP/APIs
• multi-entity and FX
• real-time reconciliation

If you checked three or more, you need a solution, not a service.

Will a Mass Payout Platform Save You Money?

The easiest way to determine whether a batch payment platform will save your business money is to calculate your current monthly payout expenses. Then, compare this figure with the fees for potential service providers. You should also consider how much money is lost with manual methods, including labor costs, mistakes, banking fees, and compliance issues.

If you find the amount of money spent per month making affiliate payments exceeds the amount you will pay for a simple platform, then it’s time to invest in a solution. What are some other ways in which a mass payout platform can save your business time?

Quick Methodology 

To determine your company’s payout costs, use a payment error cost calculator to tally a cost amount based on the number of errors per month, time spent per error, average cost per full-time employee (FTE) for payouts, average bank fee per error, and average re-submission fee.

 Miscellaneous fees (such as bank intermediary fees) may be hidden fees that also require inclusion in the calculation when costs are known in advance. 

Try the Payment Error Cost Calculator

Tipalti offers a payment error cost calculator to help you understand the costs involved in resolving errors that occur when paying suppliers and partners. Your business can reduce its costs by leveraging a unified end-to-end mass payments and accounts payable automation platform.