Use Case

Merchant Onboarding

Verify business documents and proprietor identity for merchant and partner onboarding through video KYC. Authenticate GST certificates, shop establishment licences, and authorized signatory details in one recorded session to accelerate partner activation from weeks to days.

The Challenge

Slow Merchant Activation Kills Growth

Payment platforms, lending marketplaces, and e-commerce aggregators depend on rapid merchant onboarding to scale their networks. But verifying business legitimacy requires checking multiple document types, validating authorized signatories, and confirming that the person on the call actually represents the business. Manual processes create week-long bottlenecks that push merchants to competing platforms.

  • Manual business document verification requires multiple back-and-forth cycles with merchants
  • Validating authorized signatories against business registration records is error-prone and slow
  • Slow partner activation timelines result in merchant churn before the first transaction
  • Inconsistent field verification across regions creates compliance and fraud exposure
5x

Faster merchant activation compared to traditional field verification and manual document collection processes

The BASEKYC Solution

Activate Merchants at Scale

Business Document Verification

During the video session, merchants present their business registration certificates, shop establishment licences, FSSAI certifications, or trade licences. BASEKYC's OCR engine extracts key fields, cross-references them against government databases, and flags any discrepancies in real time, eliminating multiple rounds of document re-submission.

Authorized Signatory Video Call

Verify that the person representing the merchant is an authorized signatory. During the live video session, the agent confirms the signatory's identity against the business's registration documents, captures facial biometrics, and records explicit consent. The recorded session serves as tamper-proof evidence of signatory validation.

Automated GST/PAN Validation

Instantly verify GST registration numbers and PAN details against government portals during the video session. BASEKYC confirms active registration status, matches business names across documents, and validates the merchant's tax compliance standing, reducing manual lookup time from hours to seconds per application.

Key Features for This Use Case

Regulatory Framework

Merchant Verification Compliance

Payment aggregators, gateways, and platforms onboarding merchants must adhere to strict regulatory requirements governing merchant due diligence. BASEKYC streamlines compliance across all applicable frameworks.

RBI PA/PG Guidelines 2020

The RBI Guidelines on Regulation of Payment Aggregators and Payment Gateways (RBI/DPSS/2019-20/174) mandate that all payment aggregators must perform due diligence on merchants before onboarding. This includes verifying business registration, PAN, GST registration, and the identity of authorized signatories. PAs must also conduct ongoing merchant monitoring and maintain records of all onboarded merchants with their verification documentation.

SEBI Merchant Registration Requirements

For platforms onboarding merchants in the securities and investment space, SEBI's KYC Registration Agency (KRA) regulations require verification of the business entity, its promoters, and authorized representatives. SEBI Circular MIRSD/SE/Cir-21/2011 mandates that intermediaries perform in-person verification (IPV) of the authorized signatory, which can now be fulfilled through video-based verification under updated SEBI guidelines.

UPI Merchant Onboarding Standards

NPCI's UPI procedural guidelines require Payment Service Providers (PSPs) to verify merchant identity before assigning a UPI merchant ID. This includes validating the merchant's bank account, PAN, and business establishment proof. For offline merchants, physical verification or video verification of the business premises is recommended. BASEKYC captures business premise visuals and signage during the video session as supporting evidence.

GST Verification & PMLA Compliance

Under PMLA norms applicable to payment system operators, merchant KYC must include verification of GST registration (GSTIN), PAN of the business entity and proprietor, and proof of business address. The GST portal's verification API confirms active registration status, registered business name, and principal place of business. BASEKYC automates real-time GST and PAN validation during the merchant video verification session.

Implementation

Go Live in 2 Weeks

1

Week 1: Integration & Configuration

Integrate BASEKYC APIs with your merchant management system. Configure merchant-type-specific verification checklists (sole proprietor, partnership, Pvt Ltd), set up GST/PAN auto-validation, and define the document capture sequence for the video session workflow.

2

Week 2: Testing & Go Live

Run UAT with test merchants across all business types. Verify GST and PAN validation accuracy, test signatory identity matching, and validate the maker-checker approval workflow. Launch with a pilot batch of merchants, then open to full production onboarding.

Further Reading

Activate Merchants
5x Faster

Replace weeks of manual verification with a single video session. Verify business documents, signatories, and tax credentials in one go.