Target Market Determination (“TMD”) for Instarem Business (Send and Receive) issued by Nium Pty Ltd

About this Document
Start date: 23 November 2023
Version: 2.0
Review Frequency Annually.
Product:
Send
Receive
Issuer and Distributor of the Product:
Nium Pty Limited ACN 601 384 025 (“Instarem”)
Australian Financial Services Licence Number 464627

Background
This TMD applies to the following products (collectively, the “Services”), which are non-cash payment products issued by Instarem to retail clients:

 

  • Send
  • Receive

 

It sets out the target market for each product, information about distribution conditions and the triggers for the review of this TMD. This TMD is not a Product Disclosure Statement (“PDS”) nor a summary of the terms and conditions of the Services. Please read the PDS along with the Business Terms and Conditions (available at https://www.instarem.com/info/all-policies) before making a decision to acquire the products.

 

This TMD only applies to retail non-cash payment products, meaning it only applies where these products are issued to retail customers (as defined under the Corporations Act 2001 (Cth)). It does not apply to other services provided by Instarem, or products Instarem issues to wholesale clients.

 

Capitalised terms not defined in this TMD have the meaning given to them in the PDS.

 

About the products
Receive

 

The following are the key attributes of Receive:

 

  • It is a facility for customers to load funds onto their Available Balance, in any Supported Currency.
  • Funds loaded through Receive are held in the Account and form part of a customer’s Available Balance, and can be used to fund payments made using Send.

 

Receive (and its key attributes) is likely to be consistent with the likely objectives, financial situations and needs of the customers described in this TMD because:

 

  • It provides the ability for customers to fund and maintain their Available Balance in Supported Currencies, and to facilitate transactions made using Send.

 

Send

 

The following are the key attributes of Send:

 

  • It is a facility for paying money to beneficiaries in Australia or any other supported jurisdiction.
  • It is funded from the Available Balance (as described in the PDS), meaning a Send transaction can be funded by transferring funds into the Account.

 

Send (and its key attributes) is likely to be consistent with the likely objectives, financial situation and needs of the customers described in this TMD because:

 

  • It provides the ability to send money in supported currencies to third parties (e.g. merchants/suppliers) in supported jurisdictions.
  • It provides the ability to send money in supported currencies to individuals to reimburse them for out-of-pocket expenses in supported jurisdictions.

 

Class of retail customers that comprise the target market
The target market for each product is set out below. A customer must fall within the target market for each product.
Product Target market
Receive Send is designed for customers who operate a business (including as a company or partnership) and have the following characteristics:

 

Likely objectives:
  • Fund and maintain money in supported currencies in the Account to facilitate transactions made via Send.
  • Receive funds from third party payers.

 

Likely financial situation:
  • Sufficient cash flow and financial resources to preload (and reload) the Available Balance and to pay any fees associated with the use of Receive as described in the PDS.

 

Likely needs:
  • Secure method of funding the Available Balance for transactions made via Send.
  • Receive from third party payers in multiple supported currencies without opening additional bank accounts.

 

However, Receive is not suitable for customers with the following characteristics:
Send Receive is designed for customers who operate a business (including as a company or partnership) and have the following characteristics:

 

Likely objectives:
  • Send money in supported currencies to beneficiaries in supported jurisdictions.

 

Likely financial situation:
  • Sufficient cash flow and financial resources to use funds to pay for business expenses via Send, without the need for credit.
  • Sufficient cash flow and financial resources to pay any fees associated with the use of the Send as described in the PDS.

 

Likely needs:
  • Secure method of being able to make payments to beneficiaries.

 

However, Send is not suitable for customers with the following characteristics:
  • Businesses that require a solution that allows them to make payments in unsupported currencies or to beneficiaries located in unsupported jurisdictions.
  • Customers whose activities fall within activities that are restricted by the Business Terms and Conditions (available at https://www.instarem.com/info/all-policies).

Distribution conditions
Each of the products is designed to be distributed solely by Instarem via the Instarem web portal. The products are only available to customers who have a registered account with Instarem.

 

There are controls on marketing and sales conduct to limit distribution of the products to customers within the target market. This includes that relevant content on the Instarem website and any other marketing material includes information designed to inform customers about the products’ attributes and key matters relevant to the suitability of the products.

 

In addition, Instarem performs checks on all customers before it agrees to provide the products to them. As part of such checks, Instarem may ask customers to provide information to verify their identity and eligibility, and may ask third party service providers to verify certain information about the customers.

 

These conditions make it likely that the products will only be distributed to customers within the target market described in this TMD.

 

Review triggers

Instarem will conduct reviews of this TMD annually, and when a review trigger occurs (see below).

 

In the event of the significant or material issues the TMD may no longer be considered appropriate and a review of the TMD will be undertaken by Instarem. The review triggers will include but not limited to:

 

  • Material product changes that may cause this TMD to no longer be appropriate for the target market.
  • Changes to the distribution model or channels.
  • Feedback or notification from ASIC or another interested party (such as AFCA) which suggests the TMD is no longer appropriate.
  • High volume or significant material customer complaints relating to the product, its distribution or conduct in providing the product.
  • A significant dealing that is not consistent with the product’s TMD occurs. Whether or not a dealing is significant is a matter to be determined in the circumstances of each case. Instarem will consider factors such as:
    • the proportion of customers who are not in the target market;
    • the actual or potential harm to customers, including the amount of any financial loss, resulting from customers who are not in the target market acquiring the product;
    • the nature and extent of the inconsistency of distribution with the TMD;
    • the proportion of gross income obtained from the product in respect of customers who are not in the target market acquiring the product; and
    • the time period in which these acquisitions outside the target market occurred.

 

Where a review trigger arises, this TMD will be reviewed, and updated where required, within 10 business days.

Document control
Version Date issued Comments
1.0 5 October 2021 1st TMD issued in line with the Design & Distribution Obligations
2.0 23 November 2023 2nd TMD issued in line with the Design & Distribution Obligations