Payout API Integration for Fintech Apps
|

How to Integrate Payout API in Your Fintech App: Step-by-Step

Why Every Fintech App Needs a Payout API

Whether you are building a lending platform, neobank, insurance tech, or gig economy app, payout capabilities are a core requirement. Your users expect instant money transfers, and your operations demand automated disbursements.

This guide walks you through integrating the NxtBanking Payout API into your fintech application — from authentication to production deployment.

Prerequisites

  • NxtBanking account with API access (sign up here)
  • API Key and Secret from the dashboard
  • Backend server (Node.js, Python, Java, PHP, or .NET)
  • HTTPS endpoint for webhook callbacks

Step 1: Authentication

All API requests require Bearer token authentication. First, exchange your API key and secret for an access token:

POST /api/v1/auth/token
Content-Type: application/json

{
  "api_key": "your_api_key",
  "api_secret": "your_api_secret"
}

Response:
{
  "access_token": "eyJhbGciOiJIUzI1NiIs...",
  "expires_in": 3600
}

Step 2: Register Beneficiary

Before sending a payout, register the beneficiary bank account. NxtBanking automatically performs penny-drop verification.

POST /api/v1/beneficiaries
Authorization: Bearer {access_token}

{
  "name": "Vendor ABC Pvt Ltd",
  "account_number": "1234567890",
  "ifsc": "HDFC0001234",
  "bank_name": "HDFC Bank",
  "type": "current"
}

Step 3: Initiate Payout

POST /api/v1/payouts
Authorization: Bearer {access_token}

{
  "beneficiary_id": "ben_abc123",
  "amount": 50000,
  "mode": "IMPS",
  "reference_id": "ORDER_12345",
  "narration": "Vendor payment for March 2026"
}

Step 4: Handle Webhooks

Set up your callback URL in the dashboard. NxtBanking sends real-time status updates:

POST /your-webhook-endpoint
{
  "event": "payout.completed",
  "payout_id": "pay_xyz789",
  "reference_id": "ORDER_12345",
  "status": "SUCCESS",
  "utr": "1234567890",
  "amount": 50000,
  "timestamp": "2026-02-26T10:30:00Z"
}

Step 5: Error Handling Best Practices

  • Idempotency: Always send a unique reference_id to prevent duplicate payouts.
  • Retry Logic: Implement exponential backoff for transient failures (5xx errors).
  • Balance Check: Always check your wallet balance before initiating payouts.
  • Webhook Verification: Validate webhook signatures to prevent spoofing.
  • Status Polling: If webhook is delayed, poll the payout status endpoint as fallback.

Step 6: Go Live Checklist

  1. Switch from sandbox to production API keys.
  2. Configure production webhook URL with HTTPS.
  3. Set up IP whitelisting for API access.
  4. Enable two-factor authentication on your NxtBanking account.
  5. Test with small amounts (₹1-10) before bulk payouts.
  6. Set up balance alert notifications.

Common Integration Patterns

Lending Platform

Loan approval → Trigger payout to borrower account → Track disbursement → Update loan record on webhook callback.

E-commerce Marketplace

Order delivered → Calculate seller settlement → Deduct commission → Trigger payout to seller → Auto-reconcile.

Gig Economy

Daily earnings calculated → Batch payout at end of day → Individual status tracking per worker → Handle failures with retry.

Frequently Asked Questions

How long does payout API integration take?

Most developers complete integration in 2-4 hours with NxtBanking documentation and sandbox environment.

Can I test without real money?

Yes. NxtBanking provides a full sandbox environment that simulates real payout behavior without actual fund transfers.

What programming languages are supported?

The RESTful API works with any language. We provide official SDKs for Node.js, Python, Java, PHP, and .NET.

Get Your API Keys Now →

Know More