When a platform's primary service is facilitating payments between two or more users, the transactions are considered peer-to-peer, or P2P.
In the P2P model, it is difficult to verify what was exchanged in the transaction, in comparison to other models where a platform might provide a product or service invoiced upon completion of a transaction.
Without sufficient verification, financial institutions will consider a P2P platform as high risk in terms of compliance and susceptibility for fraud.
As part of Zai's due diligence, P2P platforms requesting a production account will need to demonstrate their registration with AUSTRAC, an ASIC AFS license, or provide further detail for assessment to our Compliance team.