Onboarding a PSP is the first step for merchants to start accepting payments through various channels. Traditionally, this process has been complex and time-consuming, often involving manual steps and extensive paperwork. However, advancements in the digital arena are starting to trickle into the B2B world, requiring automated merchant onboarding to streamline the process and enhance the overall experience for merchants.
Traditional Merchant Onboarding
In a traditional setup, merchant onboarding involves several steps that can be tedious and error prone. These steps typically include: filling out detailed application forms, undergoing multiple rounds of verification, and waiting for approvals that can take several days or even weeks[3] [4].
This manual process is not only slow but also susceptible to human error and miscommunication, leading to potential delays and frustration for new merchants[2].
Automated Merchant Onboarding
Automated merchant onboarding leverages advanced technologies such as AI, machine learning, automated fill-in, real time data gathering, and digital verification systems to simplify and accelerate the onboarding process. This approach allows for real-time data validation, risk assessment, and compliance checks, drastically reducing the time and money required to onboard new merchants[1].
Key Benefits of Automated Onboarding
- Speed and Efficiency: Automated systems can reduce the onboarding time from several days to just a few minutes. Some providers (such as AsiaVerfiy) have enabled some of their customers to complete onboarding in mere minutes for 80% of their merchants. This rapid process is crucial for businesses looking to start their operations swiftly and capitalise on market opportunities without unnecessary delays [3].
- Improved Accuracy: Automation and autofill functions minimise human error by ensuring that all data entries are correctly validated and processed. This leads to fewer rejections and less back-and-forth communication between the merchant and the payment processor [4].
- Enhanced Security: Automated onboarding includes robust security measures such as digital identity verification and real-time fraud detection. These systems ensure that only legitimate businesses are onboarded, protecting both the merchant and the payment processor from potential fraud [1] [4].
- Cost-Effectiveness: By reducing the need for manual intervention and leveraging a modular approach, automated onboarding can significantly reduce costs associated with the onboarding process. Read our blog for more on merchant onboarding: streamlining your business [2].
- Scalability: Automated processes are highly scalable, allowing payment processors to handle a large number of applications simultaneously. This scalability is essential for accommodating growing businesses and expanding into new markets [1] [3].
Current Trends and Future Directions
The trend towards automated merchant onboarding is gaining momentum, driven by the need for efficiency and an improved customer experience. Leading companies in the payment processing industry are continuously enhancing their automated onboarding solutions to stay ahead of the competition[1] [4]. Moreover, as more businesses move online, the demand for seamless and fast onboarding processes will continue to rise.
AsiaVerify: groundbreaking merchant verification technology
AsiaVerify specialises in developing innovative, technology-driven business verification solutions for the Asia-Pacific region. When it comes to merchant verification, we are laser-focused on innovation and continue to integrate emerging technologies into our products to deliver solutions that truly save time, reduce operational costs and mitigate risks for our partners and clients.
To date, our approach has proven successful. Our clients have experienced a:
- 99% increase in accuracy
- 95% reduction in onboarding time
- up to 86% reduction in costs
Conclusion
In conclusion, automated, flexible merchant onboarding represents a significant advancement in the payment processing industry. By leveraging technology, businesses can benefit from faster, more accurate, and secure onboarding processes, ultimately leading to better customer satisfaction and business growth.
Learn more here or get in touch to arrange a demo.
[1] https://stripe.com/en-it/resources/more/automated-merchant-onboarding
[2] https://stripe.com/en-it/resources/more/merchant-onboarding-explained
[3] https://transferty.com/blog/comprehensive-guide-on-the-merchant-onboarding-process/
[4] https://www.mastercardservices.com/en/advisors/payments/insights/digital-merchant-onboarding>
