Why it needs PayCom42
The international and borderless payment industry is the central element of the cyber economy. There are no “world regulators” or “world supervisors” watching over this industry and its compliance. Their national borders bind regulators; they do not bind payment providers.
In the fight against cybercrime and money laundering, however, high-risk payment processors (HRPP), in particular, need to be monitored. PayCom42 sees this as its central mission. The cross-jurisdictional supervision of HRPPs is pivotal for a safe cyberfinance environment.
Compliance is the name of the game
High-risk payment processors live in the shadow of the much applauded and admired FinTech universe with household names like TransferWise, Revolut, Monzo, Starling Bank, or N26 at its center. Most of these FinTech superstars are licensed under one or more regulatory regimes and are overseen by the relevant regulators. This is not true for high-risk payment processors (HRPP).
Typically, a high-risk business is considered too risky for traditional financial institutions and major credit card companies to allow you access to their services. This is why HRPPs are important for a large part of the CyberEconomy.
The HRPP scene operates largely unregulated outside of regulatory regimes. Even regulated HRPPs often operate outside the regulatory framework through offshore companies and affiliates. Their services are not necessarily compatible with applicable laws and regulations in all jurisdictions.
In many cases, HRPPs act dubiously or even as scammers themselves. There are many known cases where HRPPs rip off their customers, withhold money contrary to their terms or agreements or even extort money. Due to their business’s nature, high-risk customers have difficulty claiming their rights through lawsuits or the courts. HRPPs know this in many cases.
Identifying, Evaluating, and Rating
PayCom42aims to provide transparency of the entire scene by identifying, evaluating, and rating its participants. We enable payment processor clients to submit listings, ratings, and reviews and thus have a voice when dealing with them.
PayCom42 defines itself as a private compliance platform for the global payment industry. It is aimed at regulators, potential partners and clients, and clients’ clients (Know-Your-Clients-Clients or KYCC).
HRPPs can list or claim their business and show themselves to the public. Too often, HRPPs operate in the darkness of the Internet and do not disclose their beneficial owners and managers. Upon listing in the HRPP report, they will be subjected to KYC by our team.