KYC Overview
Know Your Customer (KYC) is the process by which PAI verifies the identity and legitimacy of every merchant before onboarding them to the platform. It is a mandatory legal obligation — not a PAI policy choice — and must be approved before your project kickoff call and before technical integration begins.
Legal basis
KYC compliance is required under:
- United States — FinCEN (Financial Crimes Enforcement Network) regulations under the Bank Secrecy Act, including the Customer Due Diligence (CDD) Rule and Anti-Money Laundering (AML) programme requirements
- European Union — Anti-Money Laundering Directives (AMLD5 and AMLD6) and the Payment Services Directive (PSD2)
These frameworks require payment service providers to identify the legal entities and natural persons behind every merchant account, verify that identity against authoritative sources, and maintain records of that verification on an ongoing basis.
Who must complete KYC
KYC information must be provided for all of the following:
- The legal entity applying for a merchant account — see Supported business and entity types for the full list
- All directors of the entity
- All shareholders
- All authorised signatories
- All ultimate beneficial owners (UBOs) — any natural person who directly or indirectly owns or controls 25% or more of the entity
Every individual in scope must provide their own identity documentation. There are no exceptions.
By submitting your application, you warrant unconditionally that all KYC information provided to PAI is correct and up to date to the best of your knowledge. This obligation is ongoing: you are required to notify PAI in writing at least 3 business days before any change to your KYC information occurs. Where advance notice is not reasonably possible — for example, if you are a listed company and the change constitutes market-sensitive information — you must notify PAI immediately after the change has occurred.
Supported business and entity types
When you apply, you must select the type that matches your registered legal structure. The type you select determines which documents are required — see Required Documents.
| Type | Description |
|---|---|
| Individual | A natural person operating in their own name, not through a registered company. |
| Sole proprietorship | A business owned and run by one individual that is not a separate legal entity from its owner. Includes "Doing Business As" (DBA) registrations. |
| Private company | A company owned privately and not traded on a public stock exchange — for example, a limited liability company (LLC), private corporation (Corp.), or private incorporation (Inc.). |
| Public company | A company traded on a public stock exchange and required to disclose financial information to the public regularly — for example, a public corporation (Corp.), public incorporation (Inc.), or public C-corporation. |
| Non-profit or charitable organization | An organization with official non-profit or tax-exempt status — for example, a non-profit corporation, unincorporated non-profit association, or domestic non-profit corporation. |
| Governmental organization | An organization owned by the government or state. |
| Partnership | An unincorporated business owned by two or more partners. Availability varies by country. |
| Trust | A legal arrangement where assets are held by trustees on behalf of beneficiaries. Availability varies by country. |
Type availability varies by country:
Not every type is available in every country or region. Partnership and Trust in particular are supported in a limited set of jurisdictions. If your structure does not match any type above, contact your PAI point of contact before applying.
When KYC starts
KYC must be approved before kickoff and integration start:
PAI does not initiate the onboarding process — including stage access, integration guidance, or technical scoping — until KYC is approved. Submit your application and all required documents as early as possible to avoid delays to your project timeline.
What KYC blocks
| Activity | Requires approved KYC? |
|---|---|
| Project kickoff call | Yes |
| Technical integration start | Yes |
| Stage API access | Yes |
| Test transactions | Yes |
| Payment method enablement | Yes |
| Production go-live | Yes |
| Live payment processing | Yes |
| Settlement and payouts | Yes |
What PAI verifies
- Identity — government-issued photo ID for all directors, authorised signatories, shareholders, and UBOs. PAI may run further identity checks by consulting relevant registries, KYC providers, telecom providers, and governmental authorities.
- Business legitimacy — registration documents, applicable licences, and confirmation that the registered business activity matches the Merchant Products and Services for which Transactions will be submitted.
- Beneficial ownership — full UBO chain documented to natural person level. All indirect ownership through intermediate holding companies, trusts, or funds must be disclosed.
- Source of funds — required for medium and high-risk MCC categories. See MCC Document Matrix.
- Business description — nature of goods or services sold, target customer base, how transactions are initiated, and estimated transaction values and volumes. Sufficient detail is required to complete a risk assessment.
Verification method
PAI first attempts to verify submitted information automatically using external data sources including commercial registries and KYC databases. If automatic verification cannot be completed, PAI requests specific supporting documents. The exact documents required depend on your entity type, operating country, and MCC.
Ongoing obligations
KYC is not a one-time event. PAI conducts periodic reviews of merchant KYC information. You are required to respond promptly to any information requests. PAI may also submit your KYC information to relevant Scheme Owners and Acquirers to obtain or maintain payment method access on your behalf.
Failure to provide requested KYC information, or failure to notify PAI of changes, may result in suspension of Services.