Onboarding Friction for Stablecoin Merchant Settlements
We're looking to integrate stablecoin settlement for a new merchant cohort, mostly smaller e-commerce players doing sub-$5k average ticket sizes. The goal is faster payouts and lower fees than traditional rails, particularly for cross-border. We've been engaging with a few payment service providers (PSPs) and the KYB process is proving to be a significant bottleneck. Even for relatively low-risk merchants, the documentation requirements mirror what we see for high-value fiat transactions, often including granular UBO checks and extensive business activity proofs. This is delaying onboarding considerably, and for merchants looking for speed, it's counterproductive.
Anyone else experiencing this disconnect between the promise of frictionless stablecoin payments and the reality of PSP onboarding? Are certain regions or specific types of PSPs better geared for a more streamlined process for lower-volume merchants? Or is this just the current state of play due to regulatory caution, and we just need to manage expectations internally?
That's a pretty common pain point, especially with smaller merchants who might not have the dedicated compliance teams larger companies do. Have you looked into any PSPs that offer a more streamlined, perhaps tiered, KYB process specifically for lower-volume clients, or is it a one-size-fits-all wall you're hitting?