Holding customer funds.
WHAT A WALLET IS
A balance held on behalf of a customer, usable for payments.
WHAT IT ENABLES
Instant payment without a rail per transaction Refunds returned immediately Transfers between users Lower transaction cost at volume
WHAT IT INTRODUCES
Holding customer money, which is a regulated activity in most forms.
WHAT THAT MEANS
Establish the licensing position before building.
WHAT SAFEGUARDING REQUIRES
Customer funds held separately from operating funds Held at a licensed institution Not used for business purposes
WHY THAT IS FUNDAMENTAL
Customer money is theirs, and using it is the failure mode that ends firms.
WHAT TO RECONCILE DAILY
Total customer balances against funds actually held.
WHAT A SHORTFALL MEANS
A serious problem requiring immediate attention.
WHAT TO BUILD
A ledger per customer, with every movement recorded.
WHAT LIMITS TO IMPOSE
Maximum balance Transaction limits Velocity limits
WHY
Wallets attract money laundering, and limits are frequently required.
WHAT TO PLAN
Dormancy and unclaimed balances, which have defined treatment.
