Prefunding vs Corridor runway: what is the difference?
Prefunding is the money placed at the destination. Corridor runway is how long that money lasts at the current rate of payouts. Prefunding is the stock; runway is the clock on it.
| Prefunding | Corridor runway | |
|---|---|---|
| In one line | Prefunding is placing money with a payout partner or in a destination-country account before transfers are paid out. Recipients can then be paid without waiting for funds to arrive. | Corridor runway is the number of days until a corridor's prefunded balance runs out at the current outflow rate. It counts top-ups already in flight and is an operating metric coined by Polynopsis. |
| Read more | Prefunding | Corridor runway |
How they work together
Runway turns prefunding from a guess into a rule: top up when runway falls below your target. The corridor runway calculator does the arithmetic.
Where Polynopsis fits
Polynopsis shows the prefunded balance at every payout partner next to the payouts expected against it, so the team sees which partner needs topping up before the batch goes out, not after it fails.
Polynopsis coined corridor runway and works it out for every corridor, counting top-ups already in flight, with an alert before a corridor runs dry. Try it with the corridor runway calculator.
Frequently asked questions
What is the difference between prefunding and corridor runway?
Prefunding is the money placed at the destination. Corridor runway is how long that money lasts at the current rate of payouts. Prefunding is the stock; runway is the clock on it.
What is Prefunding?
Prefunding is placing money with a payout partner or in a destination-country account before transfers are paid out. Recipients can then be paid without waiting for funds to arrive.
What is Corridor runway?
Corridor runway is the number of days until a corridor's prefunded balance runs out at the current outflow rate. It counts top-ups already in flight and is an operating metric coined by Polynopsis.
Sources
- Remitly Global, Inc. Form 10-Q for the quarter ended 30 September 2024 · U.S. Securities and Exchange Commission (EDGAR)
- Why is pre-funding required in the money transfer world? · Faisal Khan
- International Money Express, Inc. Form 10-K for fiscal year 2024 · U.S. Securities and Exchange Commission (EDGAR)
- Consultation Paper on Liquidity Buffers and Survival Periods (CP28) · Committee of European Banking Supervisors (hosted by the European Banking Authority)
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.
About Polynopsis
Polynopsis is liquidity management software for cross-border payment companies. The name joins poly, many, and synopsis, a seeing together: one live view of money spread across many banks, payout partners, exchanges and stablecoin wallets, including money in flight, with a warning before any corridor runs dry.
Why it is called Polynopsis · About Polynopsis · Glossary · Corridor runway calculator