A receiving agent, also called a paying or payout agent, is the business in the destination country that hands a money transfer to the beneficiary. It acts for a money transfer operator under a contract and may be a bank, post office, exchange house, microfinance institution, retailer or mobile money provider. It is the counterpart of the sending agent, which collects the money from the sender.
For a cash pickup the receiving agent checks the beneficiary's identity and the transfer reference, pays out in local currency from its own cash and records the payment in the operator's system. The operator then reimburses it through periodic settlement, or the agent draws on funds the operator has deposited in advance. The agent earns a commission per transaction and sometimes a share of the exchange margin. It must follow the operator's compliance procedures and keep enough cash on hand. Many operators treat the receiving agent as a type of payout partner.