A counterparty is any individual or business that you wish to interact with on the Modern Treasury platform. For Payments, these interactions are typically originating a credit (a.k.a. paying) or a debit (a.k.a. charging) using payment orders. Counterparties can have one or more bank accounts, which are called "external accounts" in Modern Treasury.
Counterparties are also used for account verifications, compliance checks, and virtual account assignment. There are multiple ways to create and use counterparties. Refer to the guides for examples.