KYC

Know Your Customer (KYC) is a standard identity verification process used to confirm the legitimacy of a customer before granting access to financial services. It involves collecting and validating personal information, such as government-issued IDs, proof of address, and biometric data.

Why is KYC required?

KYC is a regulatory requirement designed to prevent fraud, money laundering, and other illicit activities. It ensures compliance with Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) regulations. By verifying customer identities, KYC helps maintain security, transparency, and trust within financial ecosystems.

XGateway KYC requirements

• Crypto Payments and Alternative Payment Methods: No additional KYC is required.

• SEPA Secure: Additional KYC is required starting from the first transaction.

XGateway enforces KYC verification using the SumSub widget during the checkout process (see the checkout flow). Customers must interact with the widget and manually provide the required KYC data.

Data collected in the KYC flow

First step of the KYC process is to collect the user data that will later be verified

Required data for KYC

• Address line 1

• Address line 2

• Postal code

• City

• Address Country (ISO 3166-1 alfa-2 country code)

• Date of Birth, mm/dd/yyyy

• Source of Funds - Salary / Business Income / Pension / Other

The KYC process on the SumSub side is a matching game: i.e. the more data provided by a merchant/customer, the higher the likelihood of passing the KYC. On the other hand, customers might have already passed SumSub verification before, so in such cases, smaller KYC data sets can lead to a successful pass.

Second step of the KYC process is an Identity document check

Required data for identity document check

• Issue country

• Document type - Selfie / Passport / Drivers License / ID card

• Content - document picture

Third step is a Liveness check - face identification performed by the partner widget. User will be prompted to use their camera and provide a well lit and clear image of their face.

Final step is address confirmation

Required data for address confirmation

• Document picture uploaded by the user

Supported types are provided by the partner widget and may include valid ID documents containing address, utility bills, bank- or government-issued documents over the last 3 months, etc.

Data collected during the steps of KYC flow is not stored on XGateway side. It is securely handled by the KYC partner instead, and the final result is based on the partner (SumSub) decision.

Corner Cases

If KYC processing fails mid-process, the XGateway SumSub KYC widget will attempt to identify the problematic fields and submit a patch request with updated information to expedite verification.

• Average Processing Time: 15 seconds

• Typical Processing Time: 10 seconds

• Manual Review Cases: 10 minutes or longer

• Historical Pass Rate: 96–97%