Disbursement partner
Disbursement partner refers to a bank, aggregator, mobile wallet or cash pickup network that pays out cross-border transfers to recipients. Money placed with it in advance is often reported as disbursement prefunding.
How it works
The term is common in public company filings. Remitly uses it for the banks, aggregators, cash pickup networks and mobile wallets that complete its transfers. It cites reach to over 5 billion bank accounts and wallets and about 470,000 cash pickup locations. Its partners may be locally licensed businesses or regulated banks.
Accounting treatment matters. Remitly records amounts held in accounts it does not legally own separately, typically as disbursement prefunding. In SEC correspondence it explained that amounts already sent to partners should be recognised as an asset. Finance teams should track partner balances as a distinct line, not as ordinary cash.
Risks include partner insolvency, delayed confirmations and gaps between your ledger and the partner's statement. Daily balance confirmations reduce the chance of an unexplained difference growing unnoticed. Contracts should set confirmation times and dispute steps.
Example
Illustrative example: A firm's ledger shows $850,000 held with an India disbursement partner. The partner's end-of-day statement shows $835,000. Investigation finds a $15,000 payout the partner booked that day but the firm recorded the next morning. The $15,000 difference is a timing item, not a loss.
Frequently asked questions
Where does disbursement prefunding sit on the balance sheet?
Public remittance firms often show it as a separate asset, apart from cash. Remitly does so because it lacks legal title to the accounts holding the money. Your auditor will confirm the right presentation for your structure.
Do disbursement partners need their own licenses?
They usually operate under the rules of the receiving country. Remitly notes its partners may be locally licensed businesses or regulated banks. Confirm each partner's regulatory status at onboarding and monitor it afterwards.
Related terms
Sources
- Remitly Global, Inc. Form 10-K for fiscal year 2024 · U.S. Securities and Exchange Commission (EDGAR)
- Remitly Global, Inc. Form 10-Q for the quarter ended 30 September 2024 · U.S. Securities and Exchange Commission (EDGAR)
- Remitly Global, Inc. response to SEC staff comments on draft Form S-1 (August 2021) · Remitly Investor Relations (SEC correspondence)
Know where all your money is.
Polynopsis gives cross-border payment teams one live position across every bank, payout partner, exchange and wallet, including money in flight, and warns before a corridor runs dry.