How a Global Remittance Fintech Scaled Cross-Border Payouts with Tazapay

Background

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The merchant is a licensed remittance fintech operating through its UK entity. Unlike consumer-facing remittance apps, the merchant operates as a corridor aggregator and correspondent sitting between remittance providers and destination-country banking partners to facilitate the movement of funds across borders.

Remittance providers desposit into the merchant’s virtual accounts, and the merchant’s banking partners in Bangladesh handle last-mile delivery to beneficiaries. The challenge: building reliable collection and payout infrastructure to support this at scale, across multiple currencies and sending markets.

Beyond this core B2B correspondent business, the merchant also expanded into Singapore as a B2C corridor collecting directly from end-users via local payment rails and routing payouts to Bangladesh through the same infrastructure.

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How It Works

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B2B Correspondent Flow (Core Business)

The merchant acts as the corridor aggregator between global remittance providers and Bangladeshi banking partners.

Step 1 – Collect: Remittance providers deposit funds into the merchant’s multi-currency virtual accounts provisioned by Tazapay (USD, EUR, GBP, SGD).

Step 2 – Route & Pay Out: Tazapay handles FX conversion and routes payouts to the merchant’s partner bank Nostro accounts in Bangladesh.

Step 3 – Last-Mile Delivery: Partner banks in Bangladesh deliver funds to beneficiaries’ bank accounts or mobile wallets.

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P2P Singapore Corridor (Extension)

A direct-to-consumer corridor added alongside the core B2B business, using the same payout infrastructure.

Step 1 – Collect Locally: End-users in Singapore send money via PayNow / FAST into the merchant’s SGD collection account.

Step 2 – Route & Pay Out: Tazapay converts SGD and routes payouts to partner bank Nostro accounts in Bangladesh.

Step 3 – Last-Mile Delivery: Partner banks handle delivery to beneficiaries.

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Challenges

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Before Tazapay, the merchant faced several structural barriers to scaling its correspondent business and expanding into new markets:

• Fragmented collection infrastructure: Receiving funds from multiple remittance providers in multiple currencies required separate banking relationships and account structures creating operational overhead and limited treasury visibility.

• No unified virtual account layer: Without centralized VA infrastructure, each new remittance provider relationship required bespoke account provisioning and onboarding.
• Complex payout routing: Moving funds from collection accounts to partner bank Nostro accounts in Bangladesh involved multiple intermediaries, manual processes, and inconsistent settlement timelines.
• Slow payout processing: Cross-border payout cycles averaged 3 - 5 days per transaction due to routing complexity and SWIFT cut-off misalignment.
• Singapore market entry barriers: Establishing a direct banking presence in Singapore as a foreign remittance operator is difficult and time-intensive, particularly with top-tier banks.
• Pricing pressure: Tight corridor-level FX margins and limited routing flexibility made it hard to stay competitive without sacrificing profitability.

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Solution

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Tazapay provided the merchant with end-to-end payments infrastructure purpose-built for corridor aggregators covering the full collect, hold, and payout cycle through a single integration.

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Multi-Currency Virtual Accounts for Inbound Collections

Tazapay provisioned dedicated virtual accounts in USD, EUR, GBP, and SGD. Remittance providers deposit directly into these VAs, giving the merchant a single, unified collection layer for all inbound flows regardless of sending currency or provider. This replaced the fragmented multi-bank setup and gave the merchant real-time visibility into incoming funds across all corridors.

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Corridor-Optimized Payouts to Partner Bank Nostro Accounts

Once funds land in the merchant’s VAs, Tazapay handles the payout leg converting currencies at competitive rates and routing funds to the merchant’s partner bank Nostro accounts in Bangladesh. The partner banks then process last-mile delivery to beneficiaries. This architecture keeps the merchant focused on its core business while Tazapay handles the payments infrastructure.

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Singapore B2C Collections via PayNow

For the Singapore corridor, Tazapay enabled local SGD collections through FAST and PayNow. End-users in Singapore send money directly through the merchant’s app, with Tazapay routing payouts to the same partner banks in Bangladesh. This gave the merchant a B2C product line with minimal additional infrastructure.

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Accelerated Market Entry via Tazapay’s Banking Partner

Through Tazapay’s partnership, the merchant gained ready-to-deploy Singapore banking infrastructure without navigating the lengthy process of establishing direct banking relationships independently. This compressed what would typically take months into weeks.

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