KYC (Know Your Customer)
KYC (Know Your Customer) refers to the identity verification of customers and business partners that financial service providers — including payment providers and marketplaces — must carry out before commencing business.
KYC (Know Your Customer)
KYC (Know Your Customer) comprises all measures for the identification and verification of customers, Comerciantes or business partners. In payment transactions, KYC is a central component of combating money laundering: before a Comerciante can accept payments and receive payouts, their identity must be verified.
For marketplaces, KYC means: every seller (sub-Comerciante) who accepts payments via the platform must be identified. The verification typically includes ID documents, commercial register extracts (for companies), information on the beneficial owner and a proof of address. In Switzerland, the due diligence obligations of the AMLA and the AMLO-FINMA apply.
KYB (Know Your Business) is the variant for corporate entities: here, not only the natural person but also the company itself is verified — legal form, commercial register, purpose and beneficial owners. Crucial for platform operators: if KYC is handled by the PSP, their own effort is significantly reduced.
KYC examples
A new merchant registers on a Swiss marketplace. The PSP requests a copy of an ID, proof of address, and an extract from the commercial register before the first payout is made.
A sole trader is verified via video ident in 5 minutes — automated KYC accelerates onboarding.
In the case of a GmbH, it is also verified who the beneficial owner is — the person who holds more than 25% of the shares.
KYC FAQ
What is KYC?
KYC (Know Your Customer) is the identity verification of customers and business partners. In payment transactions, Comerciantes must be verified before they can accept payments and receive payouts.
What is the difference between KYC and KYB?
KYC verifies the identity of natural persons. KYB (Know Your Business) additionally verifies the company itself — legal form, commercial register, business purpose, and ultimate beneficial owners.
Who performs KYC on marketplaces?
Usually the payment service provider (PSP) that processes the payouts to sellers. The marketplace operator collects the data and forwards them to the PSP, who performs the actual verification.
Which documents does KYC require in Switzerland?
Typically: copy of ID (passport or ID card), proof of address, and for companies additionally an extract from the commercial register and details of the beneficial owner. The exact requirements depend on the transaction volume and the risk category.
At what amount does KYC become mandatory?
According to GwV-FINMA, thresholds apply for electronic payments: from EUR 5,000 per year, identification is required. For higher risk or larger volumes, stricter requirements apply.
