diff --git a/apps/api/prisma/migrations/20260405000000_add_payout_idempotency_key/migration.sql b/apps/api/prisma/migrations/20260405000000_add_payout_idempotency_key/migration.sql
new file mode 100644
index 0000000..65495b0
--- /dev/null
+++ b/apps/api/prisma/migrations/20260405000000_add_payout_idempotency_key/migration.sql
@@ -0,0 +1,9 @@
+-- AlterTable: add idempotencyKey and missing indexes to Payout
+ALTER TABLE "Payout" ADD COLUMN "idempotencyKey" TEXT;
+CREATE UNIQUE INDEX "Payout_idempotencyKey_key" ON "Payout"("idempotencyKey");
+
+-- Add indexes
+CREATE INDEX IF NOT EXISTS "Payout_merchantId_idx" ON "Payout"("merchantId");
+CREATE INDEX IF NOT EXISTS "Payout_status_idx" ON "Payout"("status");
+CREATE INDEX IF NOT EXISTS "Payout_batchId_idx" ON "Payout"("batchId");
+CREATE INDEX IF NOT EXISTS "Payout_createdAt_idx" ON "Payout"("createdAt");
diff --git a/apps/api/prisma/schema.prisma b/apps/api/prisma/schema.prisma
index 8452509..dd5d9cc 100644
--- a/apps/api/prisma/schema.prisma
+++ b/apps/api/prisma/schema.prisma
@@ -271,8 +271,14 @@ model Payout {
   completedAt     DateTime?
   failureReason   String?
   batchId         String?
+  idempotencyKey  String?      @unique
   createdAt       DateTime     @default(now())
   merchant        Merchant     @relation(fields: [merchantId], references: [id])
+
+  @@index([merchantId])
+  @@index([status])
+  @@index([batchId])
+  @@index([createdAt])
 }
 
 enum DestType {
diff --git a/apps/api/src/modules/payouts/dto/create-payout.dto.ts b/apps/api/src/modules/payouts/dto/create-payout.dto.ts
new file mode 100644
index 0000000..f6aa3b3
--- /dev/null
+++ b/apps/api/src/modules/payouts/dto/create-payout.dto.ts
@@ -0,0 +1,69 @@
+import { z } from 'zod';
+
+// ── Destination sub-schemas ────────────────────────────────────────────────────
+
+const BankAccountDestSchema = z.object({
+  type: z.literal('BANK_ACCOUNT'),
+  accountNumber: z.string().min(1).max(64),
+  routingNumber: z.string().max(20).optional(),
+  bankName: z.string().max(255).optional(),
+  iban: z.string().max(34).optional(),
+  bic: z.string().max(11).optional(),
+  branchCode: z.string().max(20).optional(),
+  country: z.string().length(2).toUpperCase(),
+});
+
+const MobileMoneyDestSchema = z.object({
+  type: z.literal('MOBILE_MONEY'),
+  phoneNumber: z.string().min(7).max(20),
+  provider: z.string().min(1).max(100),
+  country: z.string().length(2).toUpperCase(),
+});
+
+const CryptoWalletDestSchema = z.object({
+  type: z.literal('CRYPTO_WALLET'),
+  address: z.string().min(1).max(255),
+  network: z.string().min(1).max(50),
+  asset: z.string().min(1).max(50),
+});
+
+const StellarDestSchema = z.object({
+  type: z.literal('STELLAR'),
+  address: z.string().min(1).max(255),
+  asset: z.string().min(1).max(50).default('native'),
+  memo: z.string().max(28).optional(),
+});
+
+const DestinationSchema = z.discriminatedUnion('type', [
+  BankAccountDestSchema,
+  MobileMoneyDestSchema,
+  CryptoWalletDestSchema,
+  StellarDestSchema,
+]);
+
+// ── Create single payout ───────────────────────────────────────────────────────
+
+export const CreatePayoutSchema = z.object({
+  recipientName: z.string().min(1).max(255),
+  destinationType: z.enum(['BANK_ACCOUNT', 'MOBILE_MONEY', 'CRYPTO_WALLET', 'STELLAR']),
+  destination: DestinationSchema,
+  amount: z
+    .string()
+    .regex(/^\d+(\.\d{1,18})?$/, 'amount must be a positive decimal string')
+    .refine((v) => parseFloat(v) > 0, { message: 'amount must be greater than 0' }),
+  currency: z.string().length(3).toUpperCase(),
+  scheduledAt: z.coerce.date().optional(),
+});
+
+export type CreatePayoutDto = z.infer<typeof CreatePayoutSchema>;
+
+// ── Bulk payout ────────────────────────────────────────────────────────────────
+
+export const BulkPayoutSchema = z.object({
+  payouts: z
+    .array(CreatePayoutSchema)
+    .min(1, 'At least one payout is required')
+    .max(10_000, 'Maximum 10,000 recipients per bulk payout'),
+});
+
+export type BulkPayoutDto = z.infer<typeof BulkPayoutSchema>;
diff --git a/apps/api/src/modules/payouts/dto/payout-filters.dto.ts b/apps/api/src/modules/payouts/dto/payout-filters.dto.ts
new file mode 100644
index 0000000..fa90412
--- /dev/null
+++ b/apps/api/src/modules/payouts/dto/payout-filters.dto.ts
@@ -0,0 +1,14 @@
+import { z } from 'zod';
+
+export const PayoutFiltersSchema = z.object({
+  status: z.enum(['PENDING', 'PROCESSING', 'COMPLETED', 'FAILED', 'CANCELLED']).optional(),
+  destinationType: z.enum(['BANK_ACCOUNT', 'MOBILE_MONEY', 'CRYPTO_WALLET', 'STELLAR']).optional(),
+  currency: z.string().length(3).toUpperCase().optional(),
+  dateFrom: z.coerce.date().optional(),
+  dateTo: z.coerce.date().optional(),
+  batchId: z.string().optional(),
+  limit: z.coerce.number().int().min(1).max(100).default(20),
+  offset: z.coerce.number().int().min(0).default(0),
+});
+
+export type PayoutFiltersDto = z.infer<typeof PayoutFiltersSchema>;
diff --git a/apps/api/src/modules/payouts/payouts.controller.ts b/apps/api/src/modules/payouts/payouts.controller.ts
new file mode 100644
index 0000000..df7a7bb
--- /dev/null
+++ b/apps/api/src/modules/payouts/payouts.controller.ts
@@ -0,0 +1,85 @@
+import {
+  Body,
+  Controller,
+  Get,
+  Headers,
+  HttpCode,
+  HttpStatus,
+  Param,
+  Post,
+  Query,
+  UseGuards,
+} from '@nestjs/common';
+import { PayoutsService } from './payouts.service';
+import { CreatePayoutSchema, CreatePayoutDto, BulkPayoutSchema, BulkPayoutDto } from './dto/create-payout.dto';
+import { PayoutFiltersSchema, PayoutFiltersDto } from './dto/payout-filters.dto';
+import { CombinedAuthGuard } from '../../common/guards/combined-auth.guard';
+import { JwtAuthGuard } from '../../common/guards/jwt-auth.guard';
+import { ZodValidationPipe } from '../../common/pipes/zod-validation.pipe';
+import { CurrentMerchant } from '../merchant/decorators/current-merchant.decorator';
+
+@Controller('v1/payouts')
+@UseGuards(CombinedAuthGuard)
+export class PayoutsController {
+  constructor(private readonly payoutsService: PayoutsService) {}
+
+  // ── POST /v1/payouts ──────────────────────────────────────────────────────
+  @Post()
+  @HttpCode(HttpStatus.CREATED)
+  async create(
+    @CurrentMerchant('id') merchantId: string,
+    @Body(new ZodValidationPipe(CreatePayoutSchema)) dto: CreatePayoutDto,
+    @Headers('idempotency-key') idempotencyKey?: string,
+  ) {
+    return this.payoutsService.create(merchantId, dto, idempotencyKey);
+  }
+
+  // ── POST /v1/payouts/bulk ─────────────────────────────────────────────────
+  @Post('bulk')
+  @HttpCode(HttpStatus.CREATED)
+  async createBulk(
+    @CurrentMerchant('id') merchantId: string,
+    @Body(new ZodValidationPipe(BulkPayoutSchema)) dto: BulkPayoutDto,
+  ) {
+    return this.payoutsService.createBulk(merchantId, dto);
+  }
+
+  // ── GET /v1/payouts ───────────────────────────────────────────────────────
+  @Get()
+  @UseGuards(JwtAuthGuard)
+  async list(
+    @CurrentMerchant('id') merchantId: string,
+    @Query(new ZodValidationPipe(PayoutFiltersSchema)) filters: PayoutFiltersDto,
+  ) {
+    return this.payoutsService.list(merchantId, filters);
+  }
+
+  // ── GET /v1/payouts/:id ───────────────────────────────────────────────────
+  @Get(':id')
+  async getOne(
+    @CurrentMerchant('id') merchantId: string,
+    @Param('id') id: string,
+  ) {
+    return this.payoutsService.getById(id, merchantId);
+  }
+
+  // ── POST /v1/payouts/:id/cancel ───────────────────────────────────────────
+  @Post(':id/cancel')
+  @UseGuards(JwtAuthGuard)
+  async cancel(
+    @CurrentMerchant('id') merchantId: string,
+    @Param('id') id: string,
+  ) {
+    return this.payoutsService.cancel(id, merchantId);
+  }
+
+  // ── POST /v1/payouts/:id/retry ────────────────────────────────────────────
+  @Post(':id/retry')
+  @UseGuards(JwtAuthGuard)
+  async retry(
+    @CurrentMerchant('id') merchantId: string,
+    @Param('id') id: string,
+  ) {
+    return this.payoutsService.retry(id, merchantId);
+  }
+}
diff --git a/apps/api/src/modules/payouts/payouts.module.ts b/apps/api/src/modules/payouts/payouts.module.ts
index 4b0e14b..581fcc7 100644
--- a/apps/api/src/modules/payouts/payouts.module.ts
+++ b/apps/api/src/modules/payouts/payouts.module.ts
@@ -1,4 +1,15 @@
 import { Module } from '@nestjs/common';
+import { PayoutsController } from './payouts.controller';
+import { PayoutsService } from './payouts.service';
+import { PrismaModule } from '../prisma/prisma.module';
+import { WebhooksModule } from '../webhooks/webhooks.module';
+import { StellarModule } from '../stellar/stellar.module';
+import { AuthModule } from '../auth/auth.module';
 
-@Module({})
+@Module({
+  imports: [PrismaModule, WebhooksModule, StellarModule, AuthModule],
+  providers: [PayoutsService],
+  controllers: [PayoutsController],
+  exports: [PayoutsService],
+})
 export class PayoutsModule {}
diff --git a/apps/api/src/modules/payouts/payouts.service.ts b/apps/api/src/modules/payouts/payouts.service.ts
new file mode 100644
index 0000000..618ed05
--- /dev/null
+++ b/apps/api/src/modules/payouts/payouts.service.ts
@@ -0,0 +1,352 @@
+import {
+  BadRequestException,
+  ConflictException,
+  Injectable,
+  Logger,
+  NotFoundException,
+} from '@nestjs/common';
+import { DestType, Payout, PayoutStatus, Prisma } from '@prisma/client';
+import { PrismaService } from '../prisma/prisma.service';
+import { WebhooksService } from '../webhooks/webhooks.service';
+import { StellarService } from '../stellar/stellar.service';
+import { CreatePayoutDto, BulkPayoutDto } from './dto/create-payout.dto';
+import { PayoutFiltersDto } from './dto/payout-filters.dto';
+import { randomUUID } from 'crypto';
+
+// ── Types ─────────────────────────────────────────────────────────────────────
+
+export interface BulkPayoutResult {
+  batchId: string;
+  total: number;
+  accepted: number;
+  rejected: number;
+  payouts: Array<{ index: number; payoutId?: string; error?: string }>;
+}
+
+type AssetObject = { native?: boolean; code?: string; issuer?: string };
+
+// ── Helpers ───────────────────────────────────────────────────────────────────
+
+function assetToString(asset: AssetObject): string {
+  if (asset.native) return 'native';
+  return `${asset.code}:${asset.issuer}`;
+}
+
+// ── Service ───────────────────────────────────────────────────────────────────
+
+@Injectable()
+export class PayoutsService {
+  private readonly logger = new Logger(PayoutsService.name);
+
+  constructor(
+    private readonly prisma: PrismaService,
+    private readonly webhooks: WebhooksService,
+    private readonly stellar: StellarService,
+  ) {}
+
+  // ── Create single payout ──────────────────────────────────────────────────
+
+  async create(
+    merchantId: string,
+    dto: CreatePayoutDto,
+    idempotencyKey?: string,
+  ): Promise<Payout> {
+    // Deduplicate via idempotency key
+    if (idempotencyKey) {
+      const existing = await this.prisma.payout.findUnique({
+        where: { idempotencyKey },
+      });
+      if (existing) {
+        if (existing.merchantId !== merchantId) {
+          throw new ConflictException('Idempotency key already used by another merchant');
+        }
+        return existing;
+      }
+    }
+
+    const payout = await this.prisma.payout.create({
+      data: {
+        merchantId,
+        recipientName: dto.recipientName,
+        destinationType: dto.destinationType as DestType,
+        destination: dto.destination as Prisma.InputJsonValue,
+        amount: dto.amount,
+        currency: dto.currency,
+        status: PayoutStatus.PENDING,
+        scheduledAt: dto.scheduledAt ?? null,
+        idempotencyKey: idempotencyKey ?? null,
+      },
+    });
+
+    this.webhooks
+      .dispatch(merchantId, 'payout.initiated', this.webhookPayload(payout) as Prisma.InputJsonValue)
+      .catch(() => undefined);
+
+    // Process immediately unless scheduled for the future
+    if (!payout.scheduledAt || payout.scheduledAt <= new Date()) {
+      this.processPayout(payout).catch(() => undefined);
+    }
+
+    return payout;
+  }
+
+  // ── Bulk payout ───────────────────────────────────────────────────────────
+
+  async createBulk(merchantId: string, dto: BulkPayoutDto): Promise<BulkPayoutResult> {
+    const batchId = randomUUID();
+    const results: BulkPayoutResult['payouts'] = [];
+    let accepted = 0;
+    let rejected = 0;
+
+    for (let i = 0; i < dto.payouts.length; i++) {
+      const item = dto.payouts[i];
+      try {
+        const payout = await this.prisma.payout.create({
+          data: {
+            merchantId,
+            recipientName: item.recipientName,
+            destinationType: item.destinationType as DestType,
+            destination: item.destination as Prisma.InputJsonValue,
+            amount: item.amount,
+            currency: item.currency,
+            status: PayoutStatus.PENDING,
+            scheduledAt: item.scheduledAt ?? null,
+            batchId,
+          },
+        });
+        results.push({ index: i, payoutId: payout.id });
+        accepted++;
+
+        if (!payout.scheduledAt || payout.scheduledAt <= new Date()) {
+          this.processPayout(payout).catch(() => undefined);
+        }
+      } catch (err) {
+        rejected++;
+        results.push({
+          index: i,
+          error: err instanceof Error ? err.message : 'Failed to create payout',
+        });
+      }
+    }
+
+    this.webhooks
+      .dispatch(merchantId, 'payout.initiated', {
+        batchId,
+        total: dto.payouts.length,
+        accepted,
+        rejected,
+      } as Prisma.InputJsonValue)
+      .catch(() => undefined);
+
+    return { batchId, total: dto.payouts.length, accepted, rejected, payouts: results };
+  }
+
+  // ── List ──────────────────────────────────────────────────────────────────
+
+  async list(merchantId: string, filters: PayoutFiltersDto) {
+    const where: Prisma.PayoutWhereInput = { merchantId };
+
+    if (filters.status) where.status = filters.status as PayoutStatus;
+    if (filters.destinationType) where.destinationType = filters.destinationType as DestType;
+    if (filters.currency) where.currency = filters.currency;
+    if (filters.batchId) where.batchId = filters.batchId;
+    if (filters.dateFrom || filters.dateTo) {
+      where.createdAt = {};
+      if (filters.dateFrom) where.createdAt.gte = filters.dateFrom;
+      if (filters.dateTo) where.createdAt.lte = filters.dateTo;
+    }
+
+    const [total, payouts] = await Promise.all([
+      this.prisma.payout.count({ where }),
+      this.prisma.payout.findMany({
+        where,
+        orderBy: { createdAt: 'desc' },
+        take: filters.limit,
+        skip: filters.offset,
+      }),
+    ]);
+
+    return {
+      total,
+      limit: filters.limit,
+      offset: filters.offset,
+      data: payouts.map((p) => this.formatResponse(p)),
+    };
+  }
+
+  // ── Get by ID ─────────────────────────────────────────────────────────────
+
+  async getById(id: string, merchantId: string): Promise<Payout> {
+    const payout = await this.prisma.payout.findUnique({ where: { id } });
+    if (!payout || payout.merchantId !== merchantId) {
+      throw new NotFoundException('Payout not found');
+    }
+    return payout;
+  }
+
+  // ── Cancel ────────────────────────────────────────────────────────────────
+
+  async cancel(id: string, merchantId: string): Promise<Payout> {
+    const payout = await this.getById(id, merchantId);
+
+    if (payout.status !== PayoutStatus.PENDING) {
+      throw new BadRequestException(
+        `Cannot cancel a payout in ${payout.status} status — only PENDING payouts can be cancelled`,
+      );
+    }
+
+    return this.prisma.payout.update({
+      where: { id },
+      data: { status: PayoutStatus.CANCELLED },
+    });
+  }
+
+  // ── Retry ─────────────────────────────────────────────────────────────────
+
+  async retry(id: string, merchantId: string): Promise<Payout> {
+    const payout = await this.getById(id, merchantId);
+
+    if (payout.status !== PayoutStatus.FAILED) {
+      throw new BadRequestException(
+        `Cannot retry a payout in ${payout.status} status — only FAILED payouts can be retried`,
+      );
+    }
+
+    const reset = await this.prisma.payout.update({
+      where: { id },
+      data: { status: PayoutStatus.PENDING, failureReason: null },
+    });
+
+    this.webhooks
+      .dispatch(merchantId, 'payout.initiated', this.webhookPayload(reset) as Prisma.InputJsonValue)
+      .catch(() => undefined);
+
+    this.processPayout(reset).catch(() => undefined);
+
+    return reset;
+  }
+
+  // ── Internal processing ───────────────────────────────────────────────────
+
+  private async processPayout(payout: Payout): Promise<void> {
+    await this.prisma.payout.update({
+      where: { id: payout.id },
+      data: { status: PayoutStatus.PROCESSING },
+    });
+
+    try {
+      const destination = payout.destination as Record<string, unknown>;
+
+      const isStellarPayout =
+        payout.destinationType === DestType.STELLAR ||
+        (payout.destinationType === DestType.CRYPTO_WALLET &&
+          typeof destination.network === 'string' &&
+          destination.network.toLowerCase() === 'stellar');
+
+      if (isStellarPayout) {
+        await this.processStellarPayout(payout, destination);
+      }
+      // BANK_ACCOUNT and MOBILE_MONEY remain PROCESSING until external system
+      // delivers and calls back to update the status.
+    } catch (err) {
+      const failureReason = err instanceof Error ? err.message : 'Processing failed';
+      const failed = await this.prisma.payout.update({
+        where: { id: payout.id },
+        data: { status: PayoutStatus.FAILED, failureReason },
+      });
+      this.webhooks
+        .dispatch(payout.merchantId, 'payout.failed', {
+          ...this.webhookPayload(failed),
+          failureReason,
+        } as Prisma.InputJsonValue)
+        .catch(() => undefined);
+      this.logger.error(`Payout ${payout.id} failed: ${failureReason}`);
+    }
+  }
+
+  private async processStellarPayout(
+    payout: Payout,
+    destination: Record<string, unknown>,
+  ): Promise<void> {
+    const destAddress = String(destination.address);
+    const destAsset = typeof destination.asset === 'string' ? destination.asset : 'native';
+    const sourceAsset = 'native';
+    const sourceAmount = payout.amount.toString();
+
+    const { paths } = await this.stellar.findStrictSendPaths({
+      sourceAsset,
+      sourceAmount,
+      destinationAssets: [destAsset],
+      destinationAccount: destAddress,
+    });
+
+    const bestPath = paths[0];
+    // Convert asset objects to the 'native' | 'CODE:issuer' strings parseAsset expects
+    const pathStrings: string[] = (bestPath?.path ?? []).map((a) =>
+      assetToString(a as AssetObject),
+    );
+    const destMin = (
+      parseFloat(bestPath?.destinationAmount ?? sourceAmount) * 0.99
+    ).toFixed(7);
+
+    const txHash = await this.stellar.executePathPayment({
+      sourceAsset,
+      sourceAmount,
+      destinationAccount: destAddress,
+      destinationAsset: destAsset,
+      destinationMinAmount: destMin,
+      path: pathStrings,
+    });
+
+    const completed = await this.prisma.payout.update({
+      where: { id: payout.id },
+      data: {
+        status: PayoutStatus.COMPLETED,
+        completedAt: new Date(),
+        stellarTxHash: txHash,
+      },
+    });
+
+    this.webhooks
+      .dispatch(payout.merchantId, 'payout.completed', {
+        ...this.webhookPayload(completed),
+        stellarTxHash: txHash,
+      } as Prisma.InputJsonValue)
+      .catch(() => undefined);
+  }
+
+  // ── Helpers ───────────────────────────────────────────────────────────────
+
+  private formatResponse(payout: Payout) {
+    return {
+      id: payout.id,
+      merchantId: payout.merchantId,
+      recipientName: payout.recipientName,
+      destinationType: payout.destinationType,
+      destination: payout.destination,
+      amount: payout.amount.toString(),
+      currency: payout.currency,
+      status: payout.status,
+      stellarTxHash: payout.stellarTxHash,
+      scheduledAt: payout.scheduledAt,
+      completedAt: payout.completedAt,
+      failureReason: payout.failureReason,
+      batchId: payout.batchId,
+      createdAt: payout.createdAt,
+    };
+  }
+
+  private webhookPayload(payout: Payout): Record<string, unknown> {
+    return {
+      payoutId: payout.id,
+      recipientName: payout.recipientName,
+      amount: payout.amount.toString(),
+      currency: payout.currency,
+      destinationType: payout.destinationType,
+      status: payout.status,
+      ...(payout.batchId && { batchId: payout.batchId }),
+      ...(payout.stellarTxHash && { stellarTxHash: payout.stellarTxHash }),
+      createdAt: payout.createdAt.toISOString(),
+    };
+  }
+}