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Advantages of Automated Merchant Onboarding and White Label Payment Gateway

by William Gist

Merchant onboarding faces a real problem nowadays, a problem that is related to speed, flexibility, and scalability. But what does this mean? What is merchant onboarding, and the issue of white-label payment gateways?

We’re going to answer all of that in this article.

What is Merchant Onboarding?


Merchant onboarding is a review that ensures merchants fully meet the “Know Your Customer (KYC)” requirements before they are brought onto your platform. Merchant onboarding focuses on the types of merchants you’re planning to board and the regions they operate. It also focuses on solving the issue of acquiring relationships in the global market. When it comes to any onboarding issue, there are three crucial components, which are:

  • The Onboarding Process
  • The Underwriting Management Solution
  • Enabling Flexibility and Control

The entire onboarding process can be quite difficult and time-consuming. So that’s where automated merchant onboarding processes came into play.

Benefits of Automated Services and Payment Gateways

1. Time-Efficiency


The biggest benefit comes in the form of time-efficiency. Traditional merchant onboard takes between 3 and 5 days, while it takes up to 5 minutes if you use payment gateways. A payment gateway is a merchant service provided by an e-commerce application or service. This application or service authorizes credit cards or direct payments for all of your online business, online retailers, brick and clicks, and traditional brick and mortar. By using automated payment gateways, you are effectively solving the issue of traditional acquiring.

According to www.mobam.co.uk, traditional merchant onboarding time issues can be solved by using a white-label payment gateway as payment software for the whole automation process.

2. Cost-Efficiency


Cost is calculated by asking how much IT is used to process the application cost, and how much other stakeholders cost. White label payment gateways have successfully streamlined their onboarding process to the point where the merchant doesn’t have to even speak to anyone to set up. It’s estimated that white label payment gateways are nearly 20 times more cost-effective than the traditional acquirer. While zero communication is needed for a merchant to be set up, the rebuttal here is that perhaps a merchant likes to speak to someone about specifics or specialized set-ups.

You might ask yourself how organizations make this possible. The answer to this question comes in the form of automating their business. This means automating customer onboarding, underwriting, customer service requests, and fulfillment.

Software Companies Are Disrupting Traditional Onboarding


Software companies are disrupting traditional onboarding, but in a good way since they offer a smooth, fast onboarding experience. Nowadays, being fast and smooth is what merchants should expect. Software companies work closely with the largest payment processors in the world to deliver merchants an unprecedented level of support.

And, again, this is all possible due to automation and payment gateways. Automation makes the entire onboarding process fully streamlined, while payment gateways completely remove the need for waiting 5 days to get processed. This, ultimately, helps both the merchants and the platforms by using technology that solves the problem of traditional onboarding, making their operations more successful.