Revolutionising the Merchant Experience: Embracing Digital Onboarding and Automation

The Merchant-ISO Conundrum

The merchant onboarding process is critical in determining whether a business is eligible for a payment processing partnership with an independent sales organisation (ISO). However, traditional methods can be time-consuming and error-prone, costing both parties valuable resources.

Drawbacks of Traditional Onboarding

Before digitalisation, ISOs performed onboarding tasks manually, with even experienced staff taking at least 30 minutes to transfer Merchant Processing Applications (MPAs). This method's line-by-line data transfer resulted in costly errors, such as typos and incorrect rates, which could negatively impact the ISO on transaction fees.

The Demand for Digital Solutions

As consumer expectations shifted towards convenience and on-demand services, payment processing businesses felt pressured to modernise their operations. As a result, the traditional onboarding process, reliant on paper-based work and manual AML and credit risk verification, became increasingly outdated. Despite Europe being a hub for fintech innovation, its fragmented landscape posed challenges in implementing standardised digital onboarding solutions.

The Power of Automation

Automation is the key to a seamless onboarding process. Manual tasks, such as data entry, slow down the process and introduce the risk of human error. Additionally, they can be costly in terms of time and effort. An automated onboarding process is more efficient, faster, and potentially less expensive.

According to PYMNTS, data sources allow providers to assess potential partners while adhering to their risk and underwriting rules. By collating this data into a risk scoreboard, providers can approve merchants more quickly and focus on addressing outliers. In addition, automation enables faster risk decisions and standard compliance adherence, resulting in quicker merchant approvals.

The Future of Merchant Onboarding

Embracing digital onboarding and automation is essential for the payment processing industry to meet the evolving demands of merchants and consumers. By streamlining the onboarding process, businesses can save time and resources, mitigate risks, and create a more efficient, future-proof system.