A payment can happen in the online space when there’s at least 2 registered users. The user receiving the payment has to have a bank account tied to their details, and have to have cleared KYB (Know Your Business) before they can use any payment platform in order for the payment platform to comply with AML laws.
Then the funds from the buyer are received by the payment platform, the seller or marketplace can call for the release mechanism in order for the seller user to receive their payout.
Alternatively, if the buyer is not happy with the purchase, the marketplace can also call for a refund on behalf of the buyer.
If the buyer and seller require that the payment be disbursed in multiple steps, the marketplace can put a milestone scheme in place of the escrow transaction to guarantee that their funds are secure until obligations are met.
Updated over 1 year ago