specificationVersion: "1.0"
specificationName: FinOps Framework
focusVersion: "1.0"
provider: Tipalti
providerId: tipalti
created: 2026-06-12
modified: 2026-06-12
description: >
  FinOps cost and billing framework for Tipalti API and platform usage. Tipalti uses
  a hybrid billing model combining fixed monthly subscription fees with variable
  per-transaction charges. Costs scale with payment volume, number of legal entities,
  enabled modules, and payment methods used. There are no per-user or per-approver fees.
billingModel:
  type: hybrid
  description: >
    Fixed monthly platform subscription plus variable per-transaction fees.
    Transaction costs vary by payment method, destination currency, and country.
    Module add-ons (Procurement, Expenses, Treasury) incur additional monthly fees.
  components:
    - name: Platform Subscription
      type: fixed
      billingPeriod: month
      description: Base monthly fee for the selected platform tier (AP or Mass Payments)
    - name: Payment Transactions
      type: metered
      billingPeriod: month
      description: Per-payment fee that varies by method, currency, and destination country
    - name: Invoice Processing
      type: metered
      billingPeriod: month
      description: Per-invoice processing fee for AP automation customers
    - name: Module Add-ons
      type: fixed
      billingPeriod: month
      description: Additional monthly fees for Procurement, Expenses, or Treasury modules
focusColumns:
  - column: BilledCost
    description: Total monthly billed cost including subscription and all transaction fees
  - column: EffectiveCost
    description: Amortized cost per payment processed, factoring in subscription and transaction fees
  - column: ListUnitPrice
    description: Published per-payment rate for a given method, currency, and destination
  - column: ServiceName
    description: "Tipalti service: Accounts Payable, Mass Payments, Procurement, Expenses, or Treasury"
  - column: ResourceType
    description: "Resource type: Payment, Invoice, Payee, PurchaseOrder, or Subscription"
  - column: Region
    description: Destination country or region for the payment transaction
  - column: ChargeType
    description: "Usage (transaction), Recurring (subscription), or Tax"
  - column: UsageQuantity
    description: Number of payments processed or invoices handled in the billing period
  - column: UsageUnit
    description: "payment, invoice, or month"
meters:
  - name: PaymentVolume
    unit: payment
    description: Count of individual payments processed in the billing period
    dimensions:
      - PaymentMethod
      - DestinationCountry
      - Currency
    notes: >
      Tipalti supports 50+ payment methods across 196 countries in 120 currencies.
      Per-payment fees vary significantly by method and destination.

  - name: InvoiceVolume
    unit: invoice
    description: Count of invoices processed through the AP automation workflow
    dimensions:
      - InvoiceType
      - LegalEntity
    notes: Per-invoice fees apply for AP customers using invoice automation.

  - name: PlatformSubscription
    unit: month
    description: Fixed monthly platform access fee
    dimensions:
      - PlanTier
      - ProductModule
    notes: >
      AP plans start at $99/month; Mass Payments plans start at $249/month.
      Module add-ons (Procurement, Expenses, Treasury) have additional monthly fees.

  - name: LegalEntityCount
    unit: entity
    description: Number of legal entities managed within the Tipalti platform
    notes: Multi-entity configurations may affect subscription pricing.
principles:
  Visibility:
    description: >
      Tipalti provides transaction-level reporting to give customers full visibility
      into payment costs, statuses, and volume across all payment methods and geographies.
    features:
      - Transaction-level cost reporting available in Premium and Elite plans
      - Payment status tracking across 196 countries
      - Exportable reports for reconciliation with ERP and accounting systems
      - Real-time payment status via API for programmatic cost monitoring
  Optimization:
    description: >
      Customers can optimize costs by selecting the most cost-effective payment methods
      for each destination country and currency, batching payments to maximize efficiency,
      and choosing the appropriate plan tier based on expected payment volume.
    strategies:
      - Select lowest-cost payment methods per destination (e.g., local bank transfer vs. wire)
      - Batch payments to reduce per-transaction overhead
      - Use sandbox environment for development to avoid incurring production fees
      - Negotiate volume-based discounts for high-payment-volume enterprise use cases
      - Consolidate legal entities where possible to minimize add-on module costs
      - Monitor 429 rate limit errors to optimize API call patterns and avoid retries