Product Disclosure Statement

Introduction

Product Disclosure Statement

Paid Transaction Account

1. About This PDS

This PDS is issued by Paid Dot Pty Ltd (ABN 14 642 944 278) trading as Paid.inc under Australian Financial Services Licence No. 700215. It is prepared in accordance with the Corporations Act 2001 (Cth) and is designed to help you understand the Paid Transaction Account and decide whether it is appropriate for you.

This PDS covers: what the Paid Transaction Account is; who it is for; how client money is held; the product's features, benefits and risks; all fees and remuneration; your cooling-off rights; tax; privacy; identity verification requirements; how to make a complaint; and how this PDS is updated.

2. About The Issuer

Paid operates a technology platform for the Australian construction industry. We enable builders, subcontractors, suppliers, property developers, owners and professional advisers to create, manage and administer construction contracts and process associated payments electronically.

Paid is the issuer of the Paid Transaction Account. We do not provide credit, banking services, investment advice or insurance.

3. What is the Paid Transaction Account

The Paid Transaction Account is a Non-Cash Payment (NCP) facility issued by Paid under AFSL 700215. It enables users to deposit, hold and electronically transfer funds in connection with construction contracts, property development projects and related professional services.

The Paid Transaction Account is a payment facility. it is not a bank account, savings account, term deposit or investment product. It is not covered by the Australian Government's Financial Claims Scheme (FCS). Interest is not credited to your account.

As an NCP product, the Paid Transaction Account is a financial product regulated by ASIC under the Corporations Act. Its primary purpose is to facilitate contract-linked payments within the construction and property sector — not to hold savings or generate investment returns.

Funds deposited into the Paid Transaction Account are held as client money with an Authorised Deposit-Taking Institution (ADI), segregated from Paid's own money, in accordance with Part 7.8 of the Corporations Act. See Section 6 for full details.

4. Who is This Product For?

The Paid Transaction Account is designed for Australian businesses and individuals involved in construction, property development and related professional services who need a secure, contract-linked payment facility. It is distributed in accordance with Paid's Target Market Determination (TMD) — see Section 18.

Eligibility Requirements

To open and use a Paid Transaction Account, you must:

(a) Be an individual aged 18 or over, or a business entity registered in Australia;

(b) Have a need for a non-cash payment facility in connection with a construction, property development or professional services contract;

(c) Successfully complete Paid's identity and business verification process (see Section 15);

(d) Read this PDS in full and the FSG;

(e) Accept the Paid Service Agreement; and

(f) Not be subject to sanctions or AML/CTF restrictions that prevent use of the platform.

5. How to Open an Account

To open a Paid Transaction Account, follow these steps:

Before You Deposit

Do not deposit funds until you have read this PDS in full, accepted the Service Agreement, and completed identity verification. Funds deposited before verification is complete may be held pending completion of the verification process.

6. How Client Funds Are Held

The way Paid holds your money is governed by Part 7.8 of the Corporations Act (the Client Money Rules). The following explains what this means for you.

Segregation and ADI Holding

Funds deposited into your Paid Transaction Account are held as client money with an Authorised Deposit-Taking Institution (ADI). This means your funds are legally segregated from Paid's own money. Paid cannot use your funds to pay its own operating expenses or creditors.

Funds may be held in pooled client money accounts with other users' funds. Each user's balance is individually recorded and allocated in Paid's ledger system via each user's dedicated BSB and account number. Your individual entitlement is always separately tracked, even though funds may be commingled at the ADI level.

Financial Claims Scheme

The Paid Transaction Account is not a bank deposit and is not covered by the Australian Government's Financial Claims Scheme (FCS). The FCS protects deposits held directly with ADIs, it does not protect client money held by a financial services licensee such as Paid, even where that money is held with an ADI on your behalf.

If Paid Becomes Insolvent

In the event of Paid's insolvency, your funds are subject to the client money provisions of the Corporations Act. These provisions require that client money be returned to users before being applied to Paid's general creditors. However:

(a) There may be delays in returning funds while the insolvency administrator determines individual entitlements;

(b) In limited circumstances, some client money may be unavailable if it was applied in accordance with a user's instructions before insolvency (e.g. funds already committed to a contractual payment); and

(c) The Corporations Act insolvency protections for client money are separate from, and more limited than, the FCS protections that apply to bank deposits.

7. Product Features

The Paid Transaction Account includes the following features. Feature availability may depend on your user type and the project you are working on.

7.1 SecurePaid — Escrow and Contract-Linked Payments

SecurePaid is Paid's core payment security feature. It allows funds to be held in an escrow arrangement and released only when specified contractual criteria are met — for example, when a progress claim is approved or a project milestone is achieved.

• Funds placed into SecurePaid cannot be moved unilaterally by either party.
• Release of funds requires satisfaction of the contractual release conditions agreed between the parties.
• Disputed funds remain held until the dispute is resolved by agreement, mediation, or a court or arbitration order.
• SecurePaid reduces the risk of payment disputes and provides both payers and payees with contractual certainty.

7.2 Connected Payments — Upstream and Downstream Linking

Connected Payments allows payment flows to be linked across the project hierarchy, from developer or financier (upstream) through to builder and subcontractors (downstream).

• Payments can be programmed to cascade automatically when upstream funds are released.
• Reduces delays from manual payment processing across multiple contract tiers.
• Provides a full audit trail of payment flows across the project.

7.3 Progress Claims

The Paid Platform supports the submission, review and approval of progress claims electronically.

• Users can upload claims with optional geolocated and timestamped media (photos, documents) as supporting evidence.
• Claims are reviewed by the paying party within the platform before payment is triggered.
• Claim records are stored and auditable for the life of the project.
• Progress claims processed through Paid's platform are compatible with the requirements of applicable security of payment legislation in each state and territory.

7.4 Retention Accounts

Where a construction contract requires retention amounts to be withheld from progress payments, the Paid Platform supports the holding of those retention amounts separately within the platform.

Statutory retention trust obligations vary by state and territory and depend on contract value and applicable legislation. Paid's retention account feature supports compliance with retention obligations but does not replace the need for independent legal advice about your specific statutory obligations. Users should seek legal advice about their obligations under applicable security of payment and construction legislation.

7.5 Early Release of Funds

The Early Release feature allows users to access funds already held within the Paid Platform before the contractual payment due date.

Early Release is not a credit product and Paid is not a credit provider. Only funds already held within the Paid Platform to which you have an existing contractual entitlement — are eligible for early release. If the upstream payment that funds the early release subsequently fails, you will be required to immediately repay the released amount. An early release fee applies, see Section 10.

7.6 Third-Party Finance

Paid may facilitate access to third-party cashflow finance products through the Paid Platform. Any such products are offered by independent third-party finance providers under separate agreements between you and that provider. Paid is the facilitator only, not the credit provider, lender or product issuer.

Information about third-party finance options on the platform is general information only and does not constitute a recommendation or personal advice. You should seek independent advice before entering into any finance arrangement.

7.7 Payment Automation

The Paid Platform supports automated and rule-based disbursement workflows, for example, automatic payment of downstream contractors when upstream funds are received and release conditions are met.

• Automation rules are set by users in connection with their construction contracts.
• Automated payments are subject to the same SecurePaid release conditions as manual payments.
• Users remain responsible for the accuracy of payment instructions and automation rules.

7.8 Audit Trail and Reporting

All transactions processed through the Paid Platform are logged and auditable. Users can access their full transaction history and download records at any time through the platform.

• Transaction records include timestamps, payment amounts, counterparty details and contractual references.
• Records are available 24 hours a day, 7 days a week.
• On account closure, users may request export of their data — see the Service Agreement for details.

8. Significant Benefits

The following are the significant benefits of the Paid Transaction Account for eligible users:

9. Significant Risks

The following are the significant risks associated with the Paid Transaction Account. This is not an exhaustive list, you should consider all risks in the context of your own circumstances before opening an account.

10. Fees, Charges and Remuneration

The following is a complete disclosure of all fees, charges and other remuneration payable in connection with the Paid Transaction Account. All fees are in Australian dollars (AUD) and include GST where stated.

10.1 Transaction Fees

10.2 Other Fees and Charges

10.3 Other Remuneration Received by Paid

In addition to the fees above, Paid receives the following other forms of remuneration in connection with the Paid Transaction Account:

(a) Banking and ADI Commissions: Paid may receive commissions, rebates or fee-sharing payments from its banking and ADI partners. These arrangements are not an additional charge to you, they are incorporated into Paid's overall commercial structure.

(b) Referral Fees: Paid may receive referral fees or commissions where it introduces users to third-party providers such as finance providers, insurance providers or professional services firms. The existence and approximate basis of any such fee is disclosed at the point of referral.

(c) Interest: Funds held in pooled client money accounts with an ADI may earn interest. That interest is retained by Paid to fund platform operations. It is not credited to individual accounts.

(d) De-identified Data: Paid derives commercial value from de-identified, aggregated platform data. See Section 14.

For a full fee schedule you can request a copy by contacting contact@paid.inc.

11. Cooling Off Period

A cooling-off period applies to retail clients who acquire the Paid Transaction Account.

This cooling-off right is provided under s.1019A of the Corporations Act. It is in addition to any rights you may have under the Australian Consumer Law.

12. Taxation

The Paid Transaction Account may have tax implications for you, depending on your individual circumstances. The following is a general summary only.

(a) GST: Paid's transaction fees are stated inclusive of GST (where applicable). Whether you can claim input tax credits on fees paid depends on your GST registration status and the nature of your transactions. Consult your tax adviser.

(b) Income Tax: Amounts you receive through the Paid Transaction Account (e.g. progress payments, contract receipts) may be assessable income for tax purposes, depending on your circumstances. Paid does not provide tax advice.

(c) Withholding Obligations: Some users may have PAYG withholding or other withholding obligations in connection with payments made through the platform. Paid does not manage your withholding obligations.

(d) Other Taxes: State and territory taxes, including stamp duty and payroll tax, may be relevant depending on the nature of your contracts and business activities.

This summary is general information only. Tax law is complex and your individual circumstances will determine your tax position. Paid strongly recommends that you obtain independent tax advice from a qualified tax adviser before opening an account or making significant payments through the platform.

13. Privacy and Your Data

13.1 Privacy Framework

Paid handles your personal information in accordance with the Privacy Act 1988 (Cth) and the Australian Privacy Principles (APPs). Our Privacy Policy is available at www.paid.inc/privacy.

We collect personal information to verify your identity, operate your account, process transactions, comply with legal and regulatory obligations, and communicate with you.

13.2 Biometric Data — Collection Notice

Collection Notice — Biometric Information (Sensitive Information)

Paid collects biometric information (including facial recognition data and identity document scans) through FrankieOne Pty Ltd, our appointed identity verification provider.

Biometric information is sensitive information under the Privacy Act 1988 (Cth). It is collected solely for identity verification and fraud prevention purposes.

Your biometric data is stored and processed by FrankieOne in accordance with FrankieOne's privacy policy (www.frankieone.com). Paid does not independently retain biometric images.

You may request access to or correction of your biometric data by contacting contact@paid.inc.

13.3 Use of De-identified Data

By using the platform, you grant Paid a licence to use de-identified and aggregated data derived from your platform activity for commercial purposes, including platform development, AI model training, industry benchmarking, compliance analytics and fraud detection. All commercial data use is on a genuinely de-identified basis. Paid does not sell individually identifiable user data to third parties.

13.4 Overseas Disclosure

Some of Paid's service providers, including FrankieOne and cloud infrastructure providers, operate overseas. Where your personal information is disclosed to overseas providers, Paid takes reasonable steps to ensure it is handled consistently with the Australian Privacy Principles.

14. Identity Verification and AML/CTF

Paid is a reporting entity under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) and is supervised by AUSTRAC. All users must complete identity and business verification before accessing payment features.

14.1 Verification Requirements

Verification is conducted by FrankieOne Pty Ltd and may include identity document checks, facial recognition, business registration verification and director/beneficial owner checks. You must provide accurate, complete information for verification. Providing false information may be a criminal offence.

14.2 Your AML/CTF Obligations

(a) Do not use the platform for money laundering, terrorism financing, fraud, sanctions evasion or any other unlawful purpose;

(b) Do not transact with persons, entities or countries subject to applicable Australian, US, EU, UK or UN sanctions;

(c) Cooperate with any additional verification or information requests from Paid; and

(d) Notify Paid promptly of any suspicious activity on your account.

14.3 AUSTRAC Reporting

Paid is required by law to report certain transactions and suspicious matters to AUSTRAC without notifying you. By using the platform, you consent to this. Paid may freeze, block or refuse transactions as required by AML/CTF law or sanction obligations.

The Paid Platform supports Australian domestic transactions only. Cross-border payments are not available. Further detail is in our AML/CTF Disclosure Notice at www.paid.inc/aml.

15. ePayment Code

Paid subscribes to the ePayments Code administered by ASIC. Where the Code applies to transactions on the Paid Platform, you have the following protections:

(a) Unauthorised transactions: Your liability for an unauthorised transaction depends on whether you contributed to the loss through your own conduct (e.g. sharing your password or failing to use available security features). Where you are not at fault, your liability is limited in accordance with the Code.

(b) Mistaken payments: If funds are sent to the wrong recipient due to a genuine error in payment details (not fraud), notify Paid at contact@paid.inc. We will contact the receiving institution within 10 Business Days and advise you of the outcome within 30 Business Days.

(c) Error resolution: Paid maintains procedures to investigate and resolve payment errors promptly.

16. Complaints and Dispute Resolution

16.1 How to Complain

If you have a complaint about the Paid Transaction Account or any related service, contact us at:

(a) Email: contact@paid.inc (subject line: 'COMPLAINT')

(b) Post: 1/88 Langridge Street, Collingwood VIC 3066

(c) Platform: Service Desk — Complaints function

16.2 Internal Resolution Process

External Dispute Resolution — AFCA

If you are not satisfied with our response — or we haven't responded within the required timeframe — you can refer your complaint to the Australian Financial Complaints Authority (AFCA) free of charge. AFCA is independent and its decisions are binding on Paid. Retail clients have this right regardless of any other agreement.

Website: www.afca.org.au
Phone: 1800 931 678

Email: info@afca.org.au

Post: GPO Box 3, Melbourne VIC 3001

Paid AFCA Member No.: 120784

Time limits apply, generally 2 years from Paid's final response. Contact AFCA promptly if your matter is unresolved.

17. Target Market Determination

This product is distributed in accordance with Paid's Target Market Determination (TMD) for the Paid Transaction Account. The TMD describes the class of consumers for whom this product is likely to be consistent with their likely objectives, financial situation and needs.

If you are a distributor of the Paid Transaction Account, you must comply with the distribution conditions in the TMD, report complaints and other information to Paid as required, and notify Paid of any event that may trigger a TMD review.

18. Receiving this PDS and Updates

This PDS is provided digitally via the Paid Platform and at www.paid.inc/pds. By accepting the Service Agreement and using our services, you consent to receiving this PDS and any updates digitally.

(a) Paper copy: You may request a free paper copy of this PDS at any time by emailing contact@paid.inc. We will provide it within 5 Business Days.

(b) Updates: We will update this PDS when the product, fees or regulatory requirements change materially. We will notify you of material changes at least 30 days in advance, or immediately where required by law. The current PDS is always at www.paid.inc/pds.

(c) Supplementary PDS: Where a change is not material enough to require a full new PDS, we may issue a Supplementary PDS (SPDS). The SPDS supplements and should be read with this PDS.

(d) Order of precedence: If there is any inconsistency between this PDS, any SPDS and the Service Agreement, this PDS prevails to the extent of the inconsistency in relation to the product's features and terms.

19. Glossary