Exploring On-Behalf-Of Payment Models

中文标题

探索代付模式

Citi09/25/2026updated 10/17/2026

Unknown economy

Citable research brief

Core conclusion · Tlines extraction

Citi outlines On-Behalf-Of (OBO) payment structures within In-house Bank strategies, where an entity centrally processes payments for majority-owned affiliates. Potential benefits include centralized control, fewer bank accounts, better cash visibility and freed liquidity, but implementation varies by corporate structure, market, payment type and regulation. Citi details five assessment points—business case, technology, tax/legal, regulatory compliance, jurisdictional requirements—and two solutions using virtual accounts, structured ISO 20022 tagging and cross-border payments.

Institution: Citi
Published: 09/25/2026
Research topic: US 10Y Treasury
Time horizon: Not explicitly stated

US 10Y Treasury · US10Y

Key arguments

OBO models can centralize payment control, rationalize bank accounts, improve cash visibility and free trapped liquidity, but complexity varies by structure, market, payment type and regulation.
Corporates should first assess end-to-end processes and treasury policies against a clear business case, technology, tax/legal, regulatory compliance and jurisdictional requirements.
Virtual accounts plus structured ISO 20022 OBO tagging (ultimate debtor fields) enable standardized, bank-agnostic OBO payments and intercompany balance management.
Some jurisdictions require in-country physical accounts for tax and payroll payments, limiting virtual or offshore structures.

Key numbers

Ownership threshold for IHB acting on behalf of affiliates: More than 50%

Main risks

Tax and legal implications, particularly transfer pricing for intercompany loans and services, require specialist engagement.
Local rules on cross-border payments, non-resident accounts, currency controls and corporate law can restrict or complicate a global IHB.
Jurisdictional requirements such as Italy local tax payments and payroll providers needing domestic funding may prevent virtual or offshore account use.

Corresponding source evidence

Corporates should start by conducting a detailed assessment of their end-to- end processes, treasury policies, and related requirements to determine if OBO makes sense for them — and whether it is worth overcoming the sometimes complex nature of rationalizing payments and accounts into a centralized OBO model.

Context: the conclusion is Tlines' automated extraction, not the institution's wording. Quoted evidence is publisher wording. Scope and date must travel with the conclusion.

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