Does it matter how often my PSP settles funds?

There are many flavours on how and how often your PSP settles to Payaut. Commonly we see T+1,+2,+3 schedules, meaning next day, in two days or in three business days. It can also be that your PSP settles funds as soon as they receive the funds from the scheme (payment method). Payaut reconciles as soon as it receives the funds for a transaction.

Can you describe how your KYC process is currently working?

To be able to do a KYC check, we need documents/information, which varies per individual or company. These documents and information is provided by you and/or the sellers on your platform. This can be done via API or a hosted onboarding flow. We will then check the data provided. Together with our partners, we can then ensure that we are not making a payment to a criminal organization or contribute to money laundering.

You require a substantial amount of information with your KYC process. Why is this so complex?

We try to make the KYC process as easy as possible, but we need a considerable amount of information to ensure that we adhere to PSD2 regulations as set by the EU. PSD2 regulations oblige payment service providers to onboard sellers, to prevent and avoid all risks of fraud, money laundering and financing of terrorism. In other words, as a financial organization, we have to know to whom we payout. which requires the mentioned information.

What will change in regards to our current PSP, what needs to be done to work with Payaut?

In addition to the integration of Payaut’s API, and setting up the correct split-payment instruction, only the bank account number known to the PSP has to change. We will request this at the PSP, and sent a power of attorney that we will draft with you to explain Payaut is allowed by you to receive and payout funds on behalf of the marketplace/platform.

What will happen to the current sellers on the platform, do we need to onboard them all again in your system?

Yes. However, sellers will only be onboarded when a payout has to be made after a booking has been completed. Another idea would be to review the data that you currently hold to see if you can migrate the information you hold of your sellers in the Payaut system in an easy way. This will limit the amount of work/impact on the sellers.

We have a reliable onboarding process in place, is that sufficient? / Do we need to use your KYC solution?

Normally, we take over the KYC process. But there is a possibility to keep the KYC process at the marketplace or the platform. However, this has to be reviewed by Payaut’s compliancy team.

How long can you escrow funds for us?

Payaut can escrow funds with a clear destination for a maximum of 60 days. However, when the business model of a platform or marketplace dictates that it is necessary to hold onto the money for a longer period of time (e.g. with CHEFSTBL who want to payout their chefs after the service has been performed).

Which PSP’s are you currently connected to?

Payaut can connect to all PSP’s. Currently we integrated clients that are using Buckaroo, Mollie, PayPal and Adyen. But normally, there is no limitation of PSP’s that we can handle.

How flexible is a split?

Very flexible. Payaut can handle all split-payments. Especially on this subject Payaut offers a more specialised product in comparison to the competition. This means we can split amounts endlessly and also support more difficult constructions such as franchises or multi-merchant splits.

In what way do you support payouts?

Currently we only support direct debit pay-outs. Our vision is to also offer PayPal pay-outs, block-chain or credit card pay outs.

How fast can you do the payout after the transaction is submitted?

24 hours after we have received the funds of the PSP we can transfer the funds to the seller’s account.

How frequently do you verify the data of a seller?

We only verify the data at the moment of onboarding. The only exception is if substantial changes are made: UBO change.

Can you explain a bit more about the cost structure?

Our cost structure includes three different components:

  • A KYC fee
  • A volume fee
  • A payout fee

We offer more customization for larger customers; so do retrieve more information from the customers to see whether a more tailored offer should be made. See P16 within the Sales Deck.

Do you have a Dashboard ready?

The dashboard is expected to be ready in Q2, 2022. We believe it is of utmost importance to have a specialized dashboard, to gather insights of incoming transactions of PSP’s and payouts to sellers.

Are you also a PSP?

Payaut is not a PSP, we do not house any payment methods and only handle payments to sellers and the possible commission to the platform. Our long-term vision is to offer you the infrastructure to easily connect with any PSP. But today, we are only focusing on payouts.

Which PSP do you recommend us?

It is up to the marketplace to decide which PSP(s) are chosen, we’d like to act independently.

How long does it take you to verify a seller?

Within 1 week we can review the information sent. There is a difference between individuals and business KYC checks. For an individual, it takes 2 working days, while businesses take a week or 5 working days.

What kind of license do you currently hold?

At the moment we hold an exemption from De Nederlandsche Bank. We are currently applying, and almost retrieving, payment licenses 3 and 5.

What is the advantage of a flexible PSP structure?

The advantage of a flexible PSP structure is that

  • As a platform you are not dependable on one PSP that could e.g. fail; you have back-up
  • You can easily change from PSP A to PSP B because of e.g. a better price.
  • With Payaut payment orchestration is always possible, important because not every PSP offers this.
  • Since not all payment methods are offered by every PSP, Payaut enables you to combine certain PSPs or Payment methods and therefore ensure that you offer the most relevant payment methods to your marketplace or platform’s clients/customers.