Katanox Capital

Introduction

Katanox Capital is an embedded payment advance solution designed to modernize B2B hospitality payments.

Katanox Capital is powering account-to-account (A2A) payments, replacing legacy systems such as Virtual Credit Cards (VCCs) and traditional card rails by enabling guaranteed, low-cost settlement between travel agents (OTAs, TMCs, corporates) and accommodation providers (hotels, chains, property managers).

The solution introduces an automated and scalable payment model that ensures:

Guaranteed payouts to hotels once bookings materialize
Extended liquidity for travel agents through consolidated monthly settlement
Full compliance and transparency across every transaction

Product overview: Katanox Capital

Katanox Capital introduces a structured, automated settlement layer that powers A2A payments, eliminating the need for VCCs and other intermediary payment methods.

Key benefits

Stakeholder	Benefit
Hotels	Receive guaranteed, non-reversible payments at the point of booking materialization (e.g., check-in or non-refundable stage).
Travel Agents (OTAs, TMCs, Corporates)	Gain working capital flexibility through monthly settlement, a single overview, and a simplified reconciliation process.

System architecture and components

Core structure

Katanox Capital operates as a multi-layered system with three core components:

Capital provider and risk layer
- A designated Katanox entity acts as a payment advance Provider and non-repayment risk carrier.
- This entity provides the payment advance and assumes the risk of non-repayment for each transaction.
Payout execution layer
- Katanox entities licensed in the US, EEA, and UK execute payments to hotels.
- All funds are handled through segregated client-money accounts to ensure security and regulatory compliance.
Platform orchestration layer
- The Katanox platform manages booking data ingestion, financial health checks, and continuous risk monitoring.
- It also automates settlement logic, data reconciliation, and invoice generation.
Full integration with the booking flow

Since Katanox Capital is fully integrated into the booking flow, it uses live platform data to dynamically adjust exposure to payment advances.
This means only guaranteed bookings count toward a travel agent or corporate’s limit, ensuring capital is not tied up in flexible reservations.

This separation of roles ensures compliance, scalability, and financial safety for all participants.

Operational workflow

Step-by-step process

Booking materialization

A traveler makes a non-refundable booking or checks into the hotel, triggering a payment guarantee to the hotel and a commission guarantee to the travel agent.
Payment advance

Katanox Capital advances the payment (via daily batches) for the booking on behalf of the travel agent, and pays out commissions to the travel agent
- The hotel receives a payment guarantee once the booking becomes non-refundable or the guest checks in.
- The travel agent does not need to pre-fund or use a VCC.
Monthly settlement

Travel agents settle all advanced transactions monthly.
- A single advance overview is issued, detailing principal advances and transparent fees.
Reconciliation and reporting

The Katanox platform provides real-time reporting and reconciliation data, accessible through the partner dashboard or via API integration.

Use cases by business model

Direct model

In this model, a corporate client books accommodation directly with hotels through the Katanox platform or an integrated travel management system.

Katanox Capital advances the payment for the booking on behalf of the corporate buyer.
The hotel receives a payment guarantee when the booking materializes.
The corporate buyer settles periodically with Katanox, eliminating the need to pre-fund trips or handle per-booking card payments.

Benefits:

Extended payment terms and improved liquidity for corporate travel budgets
Elimination of per-booking credit card administration
Simplified reconciliation through consolidated monthly invoicing

Merchant model

In this model, the travel agent is the Merchant of Record (MoR), directly handling bookings**.**

Katanox Capital advances the payment for these bookings on behalf of the travel agent.
Upon the booking materialization, hotels receive a payment guarantee, and the travel agent’s commissions are guaranteed.
The travel agent settles with Katanox on a monthly basis.

Benefits:

Improved liquidity and cash flow
Simplified settlement and reporting
Lower payment processing overhead

Commercial agent model (in the money flow)

In this model, the travel agent acts as an intermediary between the hotel and the corporate client, and remains in the money flow.

Katanox Capital advances the payments for the booking on behalf of the travel agent.
Upon the booking materialization, hotels receive a payment guarantee, and the travel agent’s commissions are guaranteed.
The travel agent settles with Katanox on a monthly basis, and the corporate client settles with the travel agent, with the option to execute it with embedded capital.

Benefits:

Timely commission and booking payouts
Reduced administrative burden
Increased trust and transparency between partners

Commercial agent (not in the money flow)

In this model, the travel agent acts as an intermediary between the hotel and the corporate client, but is removed from the money flow.

When the booking materializes, Katanox Capital pays the hotel in advance.
The travel agent’s commission is paid out separately via Katanox.
The corporate settles a consolidated monthly statement with Katanox Capital.

Benefits:

Hotels receive fast, guaranteed payments without VCC friction
Corporates get a single recurring settlement and clear reporting
Travel agents avoid cash handling and chargeback risk, while commissions are automated.

Getting started

This section outlines how to onboard with Katanox Capital and configure your environment.

Onboarding steps

Register your organization
- Complete KYC/KYB verification via the Katanox Platform.
- Provide required business, banking, and compliance documentation.
Integrate with the Katanox Platform
- Access your API credentials or dashboard interface.
- Connect your booking system or PMS (Property Management System) to Katanox via its APIs.
Set up financial preferences
- Define payout currencies.
- Configure settlement frequency (default: monthly).
- Review and sign the Katanox Capital financing agreement.
Testing and validation
- Use pilot testing in production to test booking-to-payout workflows.
- Validate reconciliation and reporting data against your internal accounting systems.
Go live
- Begin processing live bookings.
- Monitor payments and settlements in real time through the Katanox dashboard.

Settlement and reporting

Each billing cycle, travel agents receive:

A Consolidated monthly overview
- Lists all payment advanced transactions
- Includes principal, any fees, and total settlement amount
A Digital Statement File (CSV or JSON)
- Supports automated reconciliation
- Can be integrated into ERP or accounting systems

Compliance and risk management

Katanox Capital is structured to comply fully with financial and regulatory requirements across jurisdictions.

Key measures include:

Advance Provider: ensures proper licensing and credit control
PSP segregation: protects client funds and guarantees traceability
Continuous monitoring: automated financial health scoring and risk assessment on all participants
Data integrity: standardized financial reporting and reconciliation data via secure APIs

FAQs

How quickly do hotels receive funds?

Hotels are guaranteed payment (minus any commissions, which are reconciled automatically) as soon as the booking materializes — typically when the stay becomes non-refundable or upon guest check-in.

Payouts are non-reversible and typically cost less than VCC-based transactions.

Payouts to hotels are not made per booking, but are scheduled on a daily or other periodic basis.

When do travel agents receive commissions?

Travel agents receive commissions in a similar manner. Once the booking materializes, the commission payment is guaranteed and then paid out in batches.

What if a booking is canceled or modified?

Cancellations and changes follow the same business rules set in your Katanox configuration.

If a booking is canceled before the financing trigger (e.g., before non-refundable status), no payout is made.

How are fees calculated and advances settled?

A transparent fee is applied to each recurring settlement.

Fees depend on the travel agent’s terms and transaction volume, are clearly itemized, and are settled monthly via account-to-account transfers.

How is compliance ensured?

Katanox partners with licensed PSPs and operates under strict client-money segregation.

A designated Katanox entity acts as the payment issuer, ensuring full financial and regulatory compliance.

What reporting options are available?

All financial data — payouts, invoices, reconciliation reports — is accessible:

Via the Katanox platform
As downloadable CSV or JSON files

How does Katanox manage non-repayment risk?

Katanox conducts a continuous financial health assessment of travel agents and monitors transaction performance.

How does Katanox maximize capital?

Since Katanox Capital is embedded in the booking flow, it uses live platform data to dynamically adjust exposure to payment advances. This means only guaranteed bookings count toward a travel agent or corporate’s limit, ensuring capital is not tied up in flexible reservations.