A local payout is a payment to a recipient in another country that completes its last leg over that country's domestic payment system, in the local currency, as if it had been sent from a bank next door. The sender's provider converts the money, then instructs a bank or local payout partner in the destination country to credit the recipient through the national clearing system, instant scheme or mobile wallet network.
The alternative is an international wire transfer passed along a chain of banks under correspondent banking, which is slower and may arrive short after intermediary fees. A local payout usually arrives the same day or within seconds, for the full amount, and needs only domestic account details. To offer it, a provider needs local clearing access or a partner that has it, and normally keeps money in the country through prefunding. Each domestic system is one payout rail among those a provider may choose.