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 starting a business relationship.
KYC (Know Your Customer)
KYC (Know Your Customer) comprises all measures for identifying and verifying customers, Comerciantes, or business partners. In payment transactions, KYC is a central component of anti-money laundering efforts: before a Comerciante can accept payments and receive payouts, their identity must be verified.
For marketplaces, KYC means: every seller (sub-Comerciante) who receives payments via the platform must be identified. The verification typically includes identification documents, commercial register extracts (for companies), details of the beneficial owner, and a confirmation of address. In Switzerland, the 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, business purpose, and beneficial owners. Crucial for platform operators: if KYC is handled by the PSP, their own workload is significantly reduced.
KYC Examples
A new vendor registers on a Swiss marketplace. The PSP requests a copy of the ID, proof of address, and a commercial register extract before the first payout is made.
A sole proprietor is verified via video ident in 5 minutes — automated KYC accelerates onboarding.
In the case of a GmbH, a check is also made to determine 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 payouts to sellers. The marketplace operator collects the data and forwards it to the PSP, which performs the actual verification.
Which documents does KYC need in Switzerland?
Typically: copy of ID (passport or ID card), proof of address, and for companies additionally an extract from the commercial register and information on the beneficial owner. The exact requirements depend on the transaction volume and the risk class.
From what amount is KYC mandatory?
According to GwV-FINMA, thresholds apply to electronic payments: Identification is required for amounts of EUR 5'000 or more per year. Strikter requirements apply in the event of higher risk or larger volumes.
