Why do many P2P money transfer companies eventually pivot toward B2B payments?

Well, the answer is simple. Cost of customer acquisition is very high. It is not cheap. If you have to acquire direct customers, you know, you'll have to pay a pretty penny for that. And then it's the volume number, the value being transferred, it's very small $500, $1,000 at best, $2000, $3000. And the margins are being squeezed because everyone is in the P2P game. On the B2B side, a single invoice could be $80,000, $90,000, which could correspond to I don't know what $600, $500, $200, $300 transfers of small money transfer operations. So it's the volume of the transaction in the B2B business that is really of interest over here.

So, if you're able to earn 15 basis points, or 20 basis points on a million dollars a day in B2B transactions versus let's say, a percent $30,000 or $40,000 or $100,000 a day, you know, and you have to deal with all the small nuances of all the KYC, etc, and put a lot of pressure on your compliance department, you will eventually sort of throw in the towel and say P2P is too difficult to do, cost of acquisition is difficult, and I'd rather work with businesses and businesses offer a much more stable income, a much more predictable income and higher numbers, higher values. In order to be profitable, you want to do $10M, $20M, $30M, $40M a month, and that's what businesses can provide.