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KYC For Payment Service Providers

With the upward trend of the online/ remote businesses, payment service providers (PSPs) have played a more important role to process online payments.

PSPs process many transactions everyday, and it’s required for PSPs to ensure legitimacy of parties involved in transactions, hence a proper merchant onboarding processes have to be in place to protect businesses/ individuals using any PSPs from frauds or any money-laundering and illegal activities. 

Reserve Bank of India (RBI) has released Guidelines on Regulations of Payment Aggregators and Payment Gateway on 17th March, 2020  to regulate the activities of these payment service providers. KYC / AML guidelines are included in the mandated merchant onboarding process to ensure compliance to Know Your Customer (KYC) / Anti-Money Laundering (AML) / Combating Financing of Terrorism (CFT) guidelines.

The EU member states implemented the Fifth Anti-Money Laundering Directive to tighten the anti-money laundering and terrorist financing regulations towards anonymous issuing of electronic money products in the beginning of 2020; not more than 150 euros can be issued anonymously electronically online, cash redemption amount is limited to 50 euros etc.

Application of KYC

PSPs are responsible for ensuring the legitimacy of companies using their services and will not harm any party’s financial conditions or reputation.  PSPs have the right to reject providing services to any suspicious business entities. KYC is usually included in the merchant onboarding process of PSPs. Each PSP establishes different KYC policies. During most of the KYC procedures, PSPs will verify certain information of the business/ individual.  

Company Registration & Beneficiary Documents - documentation issued by relevant jurisdictions, shareholder registration and statement on the actual beneficiaries, individual KYC and certified proofs of identity of real beneficiaries and directors (document proofs of their identities, address, organizational structure etc.)
Terms of Conditions - Online point of sale contract signed by your customers
Business Plan - For a start up company with no commercial history, business plan will be required.
Bank Account Details - Details of the bank accounts that will process transactions using PSPs

PSPs should audit the whole paying processes of its merchants to ensure fast and safe client experience with clear terms and conditions.

Blockpass offers a user-centric, digital KYC solution that is quick, simple and free to integrate.

he Blockpass Mobile App is able to prove a user’s identity instantly whilst their data remains under their control – allowing them to use it to verify passports, driving licenses or other documentation that particular hospitality services may require. Putting the user in control of their own data whilst keeping it secure will enable a situation where much of the hassle, time, cost and frustration of conveying important but personal documents as they are used to prevent fraud and crime that would otherwise take advantage of the hospitality industry. Future developments will involve adding reputation to users for any manner of reason, allowing them to build up a reputation which has been verified by others – a particularly useful feature as we see an increase in business models where individuals offer services such as with Uber and AirBnB. In addition to this, Blockpass is working with academia to develop groundbreaking data privacy models, which will allow people to prove or verify information without exposing it at all should they wish to keep it private. Through this, Blockpass aims to bring efficiency, speed and privacy to the public and provide a cheap and simple way for the hospitality industry to conduct KYC and verify the identity and credentials of those engaging with their services.

Blockpass provides a compliant solution in the Blockpass KYC Connect™

A revolutionary eKYC system

The Blockpass KYC Connect™ provides identity verification which covers both KYC and AML regulation compliance. Users fill out the relevant details and are checked against the required lists and criteria to ensure they are not associated with criminal activity. By having these checks performed by Blockpass’ partners, companies using Blockpass’ Identity Verification solutions do not have to worry about their personal liability in screening applicants.

Instantaneous verification

With the Blockpass technology and approach, verification and onboarding happens almost instantaneously for pre-existing Blockpass users, and is usually very rapid for new Blockpass users. In addition, because Blockpass puts users in control of their data and certifications, the solution can be offered at a vastly reduced cost compared to traditional alternatives.

KYC Connect™
A Complete Solution Portfolio

Blockpass offers a multi-product portfolio that allows merchants to choose the scale of solution that applies to each business and jurisdiction. Whether a business wants only Face Match certification, or if they also require KYC, AML or enhanced SLAs, Blockpass is able to offer a full range of identity verification solutions.

NEW Start using KYC Connect™ today through our online docs portal.

Rather than having to fill out the same KYC and AML forms over and over when transacting with other financial companies, users simply have to maintain one up-to-date profile, which is then shareable with anyone in the Blockpass ecosystem for instant onboarding, saving users from repeatedly re-doing and re-submitting the same forms, and saving companies the hassle of checking KYC and waiting on checks.

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“Due to emerging technologies, Blockpass is not only able to offer a user-centric solution, but a faster, cheaper and more efficient one as well.”