diff --git a/src/main/java/org/mifos/connector/channel/api/definition/TransferApi.java b/src/main/java/org/mifos/connector/channel/api/definition/TransferApi.java
index f01040ca..4f3e9332 100644
--- a/src/main/java/org/mifos/connector/channel/api/definition/TransferApi.java
+++ b/src/main/java/org/mifos/connector/channel/api/definition/TransferApi.java
@@ -2,6 +2,7 @@
 
 import static org.mifos.connector.channel.camel.config.CamelProperties.BATCH_ID_HEADER;
 import static org.mifos.connector.channel.camel.config.CamelProperties.CLIENTCORRELATIONID;
+import static org.mifos.connector.channel.camel.config.CamelProperties.PAYEE_DFSP_ID;
 import static org.mifos.connector.channel.camel.config.CamelProperties.REGISTERING_INSTITUTION_ID;
 
 import com.fasterxml.jackson.core.JsonProcessingException;
@@ -21,6 +22,7 @@ GsmaP2PResponseDto transfer(@RequestHeader(value = "Platform-TenantId") String t
             @RequestHeader(value = BATCH_ID_HEADER, required = false) String batchId,
             @RequestHeader(value = CLIENTCORRELATIONID, required = false) String correlationId,
             @RequestHeader(value = REGISTERING_INSTITUTION_ID, required = false) String registeringInstitutionId,
+            @RequestHeader(value = PAYEE_DFSP_ID, required = false) String payeeDfspId,
             @RequestBody TransactionChannelRequestDTO requestBody) throws JsonProcessingException;
 
     @GetMapping("/channel/transfer/{transactionId}")
diff --git a/src/main/java/org/mifos/connector/channel/api/implementation/TransferApiController.java b/src/main/java/org/mifos/connector/channel/api/implementation/TransferApiController.java
index 906b9080..d31a1f28 100644
--- a/src/main/java/org/mifos/connector/channel/api/implementation/TransferApiController.java
+++ b/src/main/java/org/mifos/connector/channel/api/implementation/TransferApiController.java
@@ -2,6 +2,7 @@
 
 import static org.mifos.connector.channel.camel.config.CamelProperties.BATCH_ID;
 import static org.mifos.connector.channel.camel.config.CamelProperties.CLIENTCORRELATIONID;
+import static org.mifos.connector.channel.camel.config.CamelProperties.PAYEE_DFSP_ID;
 import static org.mifos.connector.channel.camel.config.CamelProperties.REGISTERING_INSTITUTION_ID;
 
 import com.fasterxml.jackson.core.JsonProcessingException;
@@ -34,9 +35,10 @@ public class TransferApiController implements TransferApi {
 
     @Override
     public GsmaP2PResponseDto transfer(String tenant, String batchId, String correlationId, String registeringInstitutionId,
-            TransactionChannelRequestDTO requestBody) throws JsonProcessingException {
+            String payeeDfspId, TransactionChannelRequestDTO requestBody) throws JsonProcessingException {
         Headers headers = new Headers.HeaderBuilder().addHeader("Platform-TenantId", tenant).addHeader(BATCH_ID, batchId)
-                .addHeader(CLIENTCORRELATIONID, correlationId).addHeader(REGISTERING_INSTITUTION_ID, registeringInstitutionId).build();
+                .addHeader(CLIENTCORRELATIONID, correlationId).addHeader(REGISTERING_INSTITUTION_ID, registeringInstitutionId)
+                .addHeader(PAYEE_DFSP_ID, payeeDfspId).build();
         Exchange exchange = SpringWrapperUtil.getDefaultWrappedExchange(producerTemplate.getCamelContext(), headers,
                 objectMapper.writeValueAsString(requestBody));
         logger.info("Client correlation id: " + correlationId);
diff --git a/src/main/java/org/mifos/connector/channel/camel/config/CamelProperties.java b/src/main/java/org/mifos/connector/channel/camel/config/CamelProperties.java
index d5ff6567..544bebb7 100644
--- a/src/main/java/org/mifos/connector/channel/camel/config/CamelProperties.java
+++ b/src/main/java/org/mifos/connector/channel/camel/config/CamelProperties.java
@@ -13,5 +13,6 @@ private CamelProperties() {}
     public static final String PAYMENT_SCHEME_HEADER = "X-Payment-Scheme";
     public static final String REGISTERING_INSTITUTION_ID = "X-Registering-Institution-ID";
     public static final String PARTY_LOOKUP_FSP_ID = "partyLookupFspId";
+    public static final String PAYEE_DFSP_ID = "X-PayeeDFSP-ID";
 
 }
diff --git a/src/main/java/org/mifos/connector/channel/camel/routes/ChannelRouteBuilder.java b/src/main/java/org/mifos/connector/channel/camel/routes/ChannelRouteBuilder.java
index f535ccc1..dd583f24 100644
--- a/src/main/java/org/mifos/connector/channel/camel/routes/ChannelRouteBuilder.java
+++ b/src/main/java/org/mifos/connector/channel/camel/routes/ChannelRouteBuilder.java
@@ -6,6 +6,7 @@
 import static org.mifos.connector.channel.camel.config.CamelProperties.AUTH_TYPE;
 import static org.mifos.connector.channel.camel.config.CamelProperties.BATCH_ID;
 import static org.mifos.connector.channel.camel.config.CamelProperties.CLIENTCORRELATIONID;
+import static org.mifos.connector.channel.camel.config.CamelProperties.PAYEE_DFSP_ID;
 import static org.mifos.connector.channel.camel.config.CamelProperties.PAYMENT_SCHEME_HEADER;
 import static org.mifos.connector.channel.camel.config.CamelProperties.REGISTERING_INSTITUTION_ID;
 import static org.mifos.connector.channel.zeebe.ZeebeMessages.OPERATOR_MANUAL_RECOVERY;
@@ -311,9 +312,10 @@ private void transferRoutes() {
                     extraVariables.put(BATCH_ID, batchIdHeader);
 
                     String tenantId = exchange.getIn().getHeader("Platform-TenantId", String.class);
+                    String payeeDfspId = exchange.getIn().getHeader(PAYEE_DFSP_ID, String.class);
                     String registeringInstitutionId = exchange.getIn().getHeader("X-Registering-Institution-ID", String.class);
                     String clientCorrelationId = exchange.getIn().getHeader("X-CorrelationID", String.class);
-                    logger.info("## CHANNEL Client Correlation Id: " + clientCorrelationId);
+                    logger.info("## CHANNEL Client Correlation Id: {}", clientCorrelationId);
                     if (tenantId == null || !dfspIds.contains(tenantId)) {
                         throw new RuntimeException("Requested tenant " + tenantId + " not configured in the connector!");
                     }
@@ -326,7 +328,12 @@ private void transferRoutes() {
                     transactionType.setInitiatorType(CONSUMER);
                     transactionType.setScenario(TRANSFER);
                     channelRequest.setTransactionType(transactionType);
-                    channelRequest.getPayer().getPartyIdInfo().setFspId(destinationDfspId);
+                    channelRequest.getPayer().getPartyIdInfo().setFspId(tenantId);
+                    if (payeeDfspId == null || payeeDfspId.isBlank()) {
+                        channelRequest.getPayee().getPartyIdInfo().setFspId(destinationDfspId);
+                    } else {
+                        channelRequest.getPayee().getPartyIdInfo().setFspId(payeeDfspId);
+                    }
                     String customDataString = String.valueOf(channelRequest.getCustomData());
                     String currency = channelRequest.getAmount().getCurrency();
 
@@ -339,6 +346,7 @@ private void transferRoutes() {
                             new FspMoneyData(channelRequest.getAmount().getAmountDecimal(), channelRequest.getAmount().getCurrency()));
                     extraVariables.put("clientCorrelationId", clientCorrelationId);
                     extraVariables.put("initiatorFspId", channelRequest.getPayer().getPartyIdInfo().getFspId());
+                    extraVariables.put("destinationFspId", channelRequest.getPayee().getPartyIdInfo().getFspId());
                     String tenantSpecificBpmn;
                     String bpmn = getWorkflowForTenant(tenantId, "payment-transfer");
                     if (channelRequest.getPayer().getPartyIdInfo().getPartyIdentifier().startsWith("6666")) {