Payout Destinations

When creating an entity or merchant, the payoutDestination is a required field that defines where funds settle—either a wallet address for crypto settlement or a bank account for fiat settlement. You must have a payout destination and payment types configured to receive payment on a network.

Information to know

• Payout destinations are configured per network, allowing you to choose between fiat or crypto settlement on each supported network.
• The payout destination provided at merchant creation becomes the default, though merchants can configure multiple payout destinations. Funds will only settle to the default destination.
• Please check our fiat settlement documentation for supported networks and tokens, as not all networks and tokens are available for off-ramping.
• Merchants are able to create a payout destination without having any payment types configured. However, they will not be able to take payment as both payout destination and payment type must be configured.

Crypto Settlement

For crypto settlement, simply specify per network:

settlementType: crypto
walletAddress: The blockchain wallet address where payments will be sent (must be a valid address for the specified network)

That's all that's required for crypto settlement

Fiat Settlement

Loop's off-ramping process is designed to be completely automated once initial setup is complete:

• Setup: Merchant completes KYC/KYB verification and provides bank account information
• Wallet Creation: Loop automatically creates a dedicated wallet that is permanently linked to the merchant's bank account
• Automatic Sweeping: Every 24 hours, all funds are swept from the merchant's wallet and automatically converted to fiat
• Bank Transfer: Converted funds are immediately transferred to the linked bank account

This process requires no merchant intervention once configured. Manual off-ramp initiation is also available upon request for merchants who prefer more control over timing.

Merchant Creation and Configuration

Creating the Merchant

• Create a merchant in Loop and configure settlementType: fiat
• Payout destinations are configured per network

When creating the merchant, pass fiatSettlementSettings to specify:

• Entity type: Business or individual
• Name: Required field for individuals (provide their legal name)
• Email: Optional field, defaults to the merchant's email address if not provided

API Response

Upon successful merchant creation, you'll receive:

• kycLink: Direct link to the KYC/B documentation process. Merchants must complete this for off-ramp functionality to be enabled
• bankAccountFormLink: External link to the bank account setup form. Redirect users to this link to add their banking information.

Additionally, Loop will automatically create a wallet where crypto is sent to for off-ramping

Status Monitoring

Use the GET merchant endpoint to query KYC/KYB status:

• Pending: Documentation under review
• Approved: Ready for off-ramping
• Rejected: Additional documentation or corrections required