Customer KYC

Introduction

(In Development)

KYC or Know Your Customer standards and procedures are established to protect financial organizations against fraud, money laundering, and terrorist financing.

The core of the KYC process is confirmation of the customer’s identity, understanding the customer’s behavior and source of funds, and assessing money laundering risk.

Core terms of KYC as a service:

ID – identity verification or confirmation of the legitimacy of provided personal information of the end customers. The provided personal data is compared to the identity verification document owned by the customer.

AV – address verification or confirmation of residency of end customers based on provided legit address documents.

Face verification – comparison of the end customer's face or biometric data to provided documents or in other words confirmation of ownership of the account.

PEP screening - screening over politically exposed individuals, meaning people with political roles or entrusted with public functions, including their relatives.

Sanction screening - screening over people, or organizations, engaged in illegal activities. Sanction Lists are published by Governments and International authorities.

The Paysafe KYC solution is part of the Embedded Wallet product and it is a designed to perform Customer Due Diligence on a variety of levels and there allows businesses to meet compliance requirements.

The Paysafe KYC solution allows merchants to onboard and verify their end customers or share their KYC information with Paysafe for regulatory purposes.

Part of Paysafe's primary responsibilities as an Embedded Wallet are KYC, PEP and Sanctions, Risk, and AML monitoring executed by the name of the merchant, which can ensure the legitimate purposes of customer's account creation and payment processing.

Paysafe Embedded Wallet introduces two types of KYC depending on collecting documents flow: Paysafe KYC via UI Application and Paysafe KYC via Screening API.

Paysafe KYC via UI Application

In that sense, the Paysafe KYC solution can provide a complete UI flow for collecting end customer's verification documents and verify their identity and address.

As previously explained Digital Wallet is a service concept in which each end customer is assigned to a wallet. The customer's onboarding is followed by the mandatory KYC process.

KYC Verification starter screen

Complete KYC as a Service process includes two main steps – ID verification and Address verification.

ID verification is designed to verify the Identity documents of the end customer and their biometrics. It takes two steps:

The customer uploads their ID:
- The customer selects the document type and clicks Continue.
- Biometric consent is collected. (This is required due to the collection of biometric data at the MROIF face verification step.)

To submit their ID document, customers can take webcam images of the document, upload existing image files from their device or switch to their mobile phone and use the phone's camera to take images.

KYC ID Verification step

The customer is requested to take a photo of himself to ensure that they possess the provided documents.

The second part of the verification process is the AV step which requests the customer to upload a document for address confirmation (the type of documents and their requirements are explained to the customer when the AV step is initiated).

KYC Address Verification step

Diagram: Paysafe KYC UI app integration

Merchant's customer starts KYC verification.

Merchant creates KYC session

POST https://api.paysafe.com/digitalwallet/v1/kyc/customers/123456/sessions

{
  "merchantSessionId": "ce8be7188b8a4dada0057f9e7752f834"
}

Response

{
  "merchantSessionId": "ce8be7188b8a4dada0057f9e7752f834",
  "customerId": "123456",
  "externalId": "3955370b-841d-4a5e-a4ac-1dbca5ed2114",
  "id": "2cb56b2749af52d6b257054ef3de03d8b1b07b6020e8e8c7c13139e70670d368",
  "secureCode": "c2Rmc2ZzZmRzZGZzZGY=",
  "url": "https://<paysafe-kyc-ui-app>/api/saaskyc/v1/initiate",
  "creationTime": "2022-11-15T17:54:12Z",
  "expirationTime": "2022-11-15T18:00:12Z",
  "status": "ACTIVE",
  "requiredVerificationSteps": ["IDENTITY"]
}

Merchant prepares the secureCodeHash parameter's value following these steps:
1. Decodes the base64 encoded secureCode string to a byte array
2. Hash the byte array with the sha512 algorithm
3. Encodes the produced hashed byte array with base64 algorithm
Merchant redirects the customer to the redirect url with query parameters sessionId=*2cb56b2749a...* and secureCodeHash=*MmNiNTj...*

E.g. https://\<paysafe-kyc-ui-app\>/api/saaskyc/v1/initiate?sessionID=2cb56b27...&secureCodeHash=MmNiNTj..."
Customer passes the required verification steps in the Paysafe Kyc UI app
When the customer completes the steps and clicks Continue button, the Paysafe KYC UI app navigates the customer back to the provided by the merchant successUrl configuration.
When an error has occurred, the Paysafe KYC UI app navigates the customer back to the provided by the merchant errorUrl configuration.

Getting Merchant's customer Kyc verification status

Merchant can check its customers' Kyc verification status by calling the following endpoint

GET https://api.paysafe.com/digitalwallet/v1/kyc/customers/123456/verifications

Response

{
  "customerId": "123456",
  "kycVerificationStatus": "COMPLETE",
  "consentStatus": "COMPLETE",
  "kycVerificationSteps": [
    {
      "id": "IDENTITY",
      "status": "COMPLETE"
    },
    {
      "id": "MROIF",
      "status": "COMPLETE"
    },
    {
      "id": "ADDRESS",
      "status": "COMPLETE"
    }
  ]
}

Merchant will be notified via Webhook only when its customer has completed the required verification steps successfully. The following notification will be sent to the merchant:

POST https://<merchant callback URL>/kyc/events
```
{
  "id": "c2542550-4f91-4631f-691e-701efad599d",
  "customerId": "500014306996",
  "externalId": "a2322550-af91-417f-867e-681efad44b9d",
  "timestamp": "2021-07-15T17:54:12Z",
  "eventType": "COMPLETE"
}
```

Paysafe KYC via Screening API

The Paysafe KYC solution via Screening API is for merchants who already have their own Identity Verification solution but require screening from our side. Again the KYC will be a mandatory step plugged right after the customer's onboarding.

Provided documents from the end customers side should be in JPEG, PNG, and PDF format and will be sent via API (file should be sent as a link).

By receiving the identity documents Paysafe will confirm that all information is compliant and will KYC verify the customer.

Merchant sends KYC documents for screening. Paysafe accepts the requests, downloads and screens the documents asynchronously on it's side. When the screening is completed merchant will be notified by a Webhook.

POST https://api.paysafe.com/digitalwallet/v1/kyc/customers/500006488202/documents

{
"customerId": "500006488202",
"externalId": "999996488202",
"merchantReferenceId": "e00ee9d0bf8243399abe80949d04f141",
"idDocument": {
"type": "PASSPORT",
"frontImageLink": "https://<merchant-url-to-id-doc-front-side>",
"backImageLink": "https://<merchant-url-to-id-doc-back-side>",
"collectionDate": "2019-08-24T14:15:22Z"
},
"addressDocument": {
"type": "BS",
"imageLink": "https://<merchant-url-to-address-doc>",
"collectionDate": "2019-08-24T14:15:22Z"
},
"faceImage": {
"imageLink": "https://<merchant-url-to-face-image>",
"collectionDate": "2019-08-24T14:15:22Z"
},
"taxpayerIdentificationNumber": "8710102353",
"occupation": "EXECUTIVE_DIRECTOR"
}

Response

{
"customerId": "500006488202",
"externalId": "999996488202",
"merchantReferenceId": "e00ee9d0bf8243399abe80949d04f141",
"idDocument": {
"type": "PASSPORT",
"frontImageLink": "https://<merchant-url-to-id-doc-front-side>",
"backImageLink": "https://<merchant-url-to-id-doc-back-side>",
"collectionDate": "2019-08-24T14:15:22Z"
},
"addressDocument": {
"type": "BS",
"imageLink": "https://<merchant-url-to-address-doc>",
"collectionDate": "2019-08-24T14:15:22Z"
},
"faceImage": {
"imageLink": "https://<merchant-url-to-face-image>",
"collectionDate": "2019-08-24T14:15:22Z"
},
"taxpayerIdentificationNumber": "8710102353",
"occupation": "EXECUTIVE_DIRECTOR"
}

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Customer KYC

Introduction

Paysafe KYC via UI Application

Getting Merchant's customer Kyc verification status

Paysafe KYC via Screening API

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