Delegated Payout from Merchant Wallet
Delegated Payout from Merchant Wallet
In this flow, the merchant controls a wallet (either Coinflow In-App or their own BYO wallet) and initiates payouts on behalf of users. This is ideal for platforms that manage user balances internally.
How It Works
- User requests withdrawal through your platform’s interface
- Your backend initiates payout by calling Coinflow’s API
- Funds are debited from your merchant wallet
- Coinflow processes the fiat payout to user’s bank account/card
- User receives funds in their selected payout destination
Flow of Funds
When to Use This Flow
- Gaming platforms - Where you manage in-game currency and user balances
- Betting/sweepstakes platforms - Where winnings are tracked in your system
- Rewards programs - Where you’re paying out rewards or cashback
- Marketplace platforms - Where you manage seller payouts
Implementation Options
Choose based on your wallet preference:
Option 1: Using Coinflow In-App Wallet
Advantages:
- No wallet management
- No gas fees
- Simpler integration
Option 2: Using Your Own Wallet (BYO)
Advantages:
- Full wallet control
- Use existing infrastructure
- Direct blockchain access
Key Considerations
- User Identification: Uses your internal user IDs (not wallet addresses)
- KYC Required: Each user must complete verification before their first payout
- Balance Management: You’re responsible for tracking user balances in your system
- Wallet Funding: Ensure sufficient USDC balance to cover all payouts
- Fees: Can be configured to be paid by merchant or user
Next Steps
- Configure your settlement settings
- Choose your implementation guide (Coinflow wallet or BYO wallet)
- Integrate payout endpoints
- Test in sandbox environment
