Legal
Regulatory & Compliance Disclosures.
Last updated: July 29, 2026
What Paysmith is, what it isn't, who our licensed partner is, and how verification works.
Draft. This page describes how Paysmith is structured today, during our pre-launch phase, and how the product is intended to work once it is live. It is not a substitute for the terms of any specific account, product, or partner agreement, and should be confirmed against current partner and regulatory documentation before the product launches.
1. What Paysmith is
Paysmith is a technology company. We build the software layer that gives an AI agent a spending identity (paysmith.id) and lets a business owner set and enforce spending rules, allowed payees, spending caps, and approval holds, for that agent. That software layer includes an SDK, an MCP server, and a policy/guardrail engine.
2. What Paysmith is not
Paysmith is not a bank. Paysmith does not hold a banking charter, and we do not directly custody, hold, or safeguard customer funds. We are not FDIC-insured, and we do not represent that funds moved through Paysmith are insured by Paysmith or guaranteed against loss by Paysmith. Any statement on this Site describing wallets as "real" or "live" refers to the underlying infrastructure being connected to actual regulated payment rails, once available to a given customer, not to a claim that Paysmith itself is a licensed depository institution.
3. Our licensed partner
Wallet issuance, funds safeguarding, identity verification (KYC/KYB), and cross-border payment rails are provided through Airwallex, a regulated financial infrastructure provider that holds the relevant licenses in the jurisdictions it operates in. Funds are held with Airwallex and its own banking and safeguarding partners, not with Paysmith. Paysmith's role is to provide the software and policy layer on top of that regulated infrastructure. We do not independently hold a money transmission or banking license.
4. AML / KYC, verification before production use
Before any business can move real funds in production, we require identity verification consistent with anti-money-laundering (AML) regulations, carried out through our licensed partner's onboarding process. This includes:
- Business verification (KYB) for the company opening an account, including beneficial ownership information
- Identity verification (KYC) for authorized individuals on the account
- Sanctions and watchlist screening
- Ongoing transaction monitoring, consistent with our partner's compliance program
New payees are subject to additional review. For example, a first payment to a payee the agent hasn't paid before may be held for manual approval. No agent can move funds to an unverified or unapproved payee.
5. Sandbox vs. production
Paysmith is currently in a private waitlist / pre-launch phase. No live, production money movement is enabled for anyone on the waitlist today, and no funds are held by Paysmith or on your behalf yet. Any product walkthroughs, demos, or example transactions shown on this Site are illustrative and do not reflect a real account or real money movement. When production access becomes available, it will require completed business and identity verification as described above, and any sandbox or demo environment we offer will be clearly labeled and will never move real funds.
6. Compliance program status
We are working toward SOC 2, GDPR, and UETA/E-SIGN alignment as part of building a production-ready compliance program; none of these are certified today.
7. Contact
Questions about these disclosures, our compliance program, or our licensed partner relationship can be sent to [email protected].