Pepperstone Partners with iSignthis for Paydentity

Foreign exchange and CFDs brokerage Pepperstone signed a partnership deal with iSignthis for its products Paydentity and Payment Gateway. The agreement between the companies includes both the UK and the Australian subsidiaries of the brokerage group.

The products are providing a new platform for Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term and automated identity verification also known as the Know Your Customer (KYC) Know Your Customer (KYC) Know Your Customer (KYC) is the process via which the broker is verifying the true identity of its clients in order to comply with multiple regulations. KYC is used to assess the suitability of customers when it comes to anti-money laundering regulations, any type of financial fraud and determining whether they are potentially risky for the brokerage.In particular, KYC guidelines in financial services mandate that individuals make a cohesive effort to verify the identity, suitability, and risks Know Your Customer (KYC) is the process via which the broker is verifying the true identity of its clients in order to comply with multiple regulations. KYC is used to assess the suitability of customers when it comes to anti-money laundering regulations, any type of financial fraud and determining whether they are potentially risky for the brokerage.In particular, KYC guidelines in financial services mandate that individuals make a cohesive effort to verify the identity, suitability, and risks Read this Term) procedure. Some payment providers are assisting brokers with an integrated solution that is addressing a number of fraud concerns and regulatory requirements.

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An automated KYC procedure dramatically reduces the time needed to onboard new clients and can allow the brokerage to optimize customer support costs.

The iSignthis solution is implementing a cascading KYC process, which uses public UK data from credit reference agencies, electoral roll and government public access data. As a result, the FCA’s requirements are strictly adhered to and the brokerage can focus on its business.

For clients outside of the UK, Paydentity states that it is using a database of potential verified bank customers.

Client on-boarding and retention have become key issues for brokers operating in regulated jurisdictions especially across the EU. Regulators have pledged to curtail direct sales activities of brokers and therefore eliminate a key tactic that some companies have been using to onboard clients who do not have sufficient understanding of the financial markets.

The FCA and other EU regulators such as the Belgian FSMA, Cypriot CySEC, Dutch AFM, French AMF, German BaFin and Spanish CMNV announced material measures to reform the retail FX and CFDs industry.