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Why authorization exists

A blockchain transfer has no “hold” or “ask the recipient first.” Enterprise payments need counterparty consent before value moves — especially when the recipient is a registered merchant or beneficiary PSP.

The handshake (roadmap)

Originator PSP and counterparty PSP coordinate through Atum:
  1. Originator: my customer wants to pay your customer this amount on these terms
  2. Counterparty: accepted — this merchant and amount are allowed
  3. Compliance and policy checks run on both sides during this step

What exists today

On public testnet, you can submit and settle payments without a separate counterparty authorization step for basic integration. Counterparty authorization APIs exist in the protocol (POST /v1/payments/authorizations) and are exercised in internal environments — not required for the CLI quickstart.

Custodial vs self-custodial

Identity is a different question

Atum ID answers who is acting (and what has been attested about them). Authorization answers whether this payment may proceed — funds, policy, and, when enabled, counterparty consent. A Known to Atum credential does not authorize a transfer. A signed payment request does not, by itself, replace identity credentials. Choosing which settlement providers may fulfill a payment is also not this handshake. That is an optional identity list on the payment request, set by the originator. Recipient consent (this page) is a separate step.

Relation to settlement

When enabled, authorization completes before settlement is initiated. Settlement follows the model in Atum payment lifecycle.

Next steps