Yes. This is a bit complex process.
- Not all living beings can benefit specifically from this process on the receiving end. It will benefit the person “giving merits” because it helps cleanse their minds.
- There are some specific realms where beings rely on receiving such merits. There is such a specific peta realm. There is an account in a sutta where some petas are asking for help from King Bimibisara. They had been relatives of King Bimbisara in a previous life. Such petas can get freed from that peta existence solely based on receiving merits. Unfortunately, I don’t remember the name of the sutta.