Onboarding Friction with Smaller Acquirers for Niche Markets
Curious if others are seeing increased friction during KYB with smaller, more specialized acquirers, particularly those catering to somewhat niche or higher-risk verticals. We've been evaluating a few for certain alternative payment methods that standard Tier 1 PSPs often won't touch, and the due diligence seems disproportionately granular, often bordering on redundant. It feels like they're trying to overcompensate for perceived risk or limited internal compliance resources. Is this just the new normal for these types of partnerships, or are we encountering specific regional issues?
It's creating significant delays, and the manual intervention required from our side is substantial. The initial appeal of their more competitive pricing or specific geographic reach starts to erode when you factor in the operational overhead. Thinking about whether it's worth continuing to pursue these channels or if it's better to push for a custom solution with a larger player, even if it's more expensive upfront.
That's a common issue. They often lack the sophisticated risk models of larger players, so they overcompensate with granular, manual reviews. It's inefficient, but it's their way of de-risking themselves in areas where they don't have deep expertise or extensive historical data.