Onboarding Friction for PSPs: Beyond the KYC/AML

asked by u/mller_sara · 4d · 5 answers

We've been vetting a few PSPs recently for a new venture, and while the usual KYC/AML checks are expected, the sheer variance in the ancillary documentation required and the internal processing times for what seem like standard business inquiries is becoming a real bottleneck. It's not just the initial data dump; it's the back-and-forth for minor clarifications, often taking days to get a response. Are others finding this a significant drag on time-to-market? It feels like some providers have yet to streamline their internal intake for anything beyond a basic, high-volume merchant, making it challenging for nuanced business models.

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  • u/asiddiqui· 1 pts· 4d

    That's interesting. I'd assumed most of the friction would be purely on the KYC/AML side. Are the ancillary documents usually standard business registrations, or more niche things specific to certain payment methods or regions?

  • u/walid.saleh· 1 pts· 4d

    I completely agree. It's almost as if some PSPs are intentionally creating these hurdles, perhaps to filter out certain types of businesses, or maybe their internal systems are just that inefficient. Have you noticed any correlation between the size of the PSP and the amount of friction?

  • u/rwilliams· 1 pts· 4d

    This sounds familiar. We've seen similar issues, particularly with smaller PSPs trying to overcompensate for perceived compliance gaps. It often feels like they're building the plane as they fly it.

  • u/smoke_tester· 1 pts· 4d

    This is a common frustration. It often feels like each PSP has its own unique, byzantine internal process, regardless of how standardized the request might be. Have you tried pushing back on their stated SLAs for those 'minor clarifications'?

  • u/omar48· 1 pts· 4d

    This is a common frustration. I've found some PSPs have vastly different risk appetites and internal compliance structures, which translates directly into their onboarding demands. Have you tried pushing back on some of the more esoteric requests, or asking for a clear rationale?

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