Merchant Onboarding: Global Updates – July 2025

This July, key regulatory changes are reshaping merchant onboarding with smarter data practices and stronger compliance:

• FinCEN introduces an optional third-party Tax Identification Number (TIN) collection method to simplify onboarding while maintaining robust financial crime safeguards
• The Federal Reserve implements ISO 20022 messaging for Fedwire, bringing richer payment data and enhanced interoperability
• Canada prepares for its Real-Time Rail launch alongside new stablecoin regulations, paving the way for faster, more transparent payments

Keep your onboarding sharp, and speed up processes while keeping compliance firmly in place. It’s about working smarter, not harder.

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EMEA

Industry Initiative: EMEA Bank Payments Systems Modernisation (Volante Survey 2025)

Effective Date: Ongoing (major transitions expected by the end of 2025)

Issued By: Volante Technologies (industry research insight)

‍Summary:

Banks across Europe, the MiddleEast, and Africa (EMEA) are accelerating efforts to replace outdated payment systems in response to regulatory deadlines, fintech competition, and rising customer demand for real-time services. According to the Volante Technologies’ Big Survey 2025, 99% of EMEA banks plan to implement new payment solutions within the next 12 months, signalling a region-wide shift toward scaleable, modernised infrastructure. 

‍Key Changes:

• 99% of banks are planning payment upgrades, with 52% aiming for rollout within the next six months. 
• Institutions are budgeting an average of USD 1.5 million for modernisation efforts.
• SEPA instant payments and SWIFT ISO 20022 deadlines are driving urgency. 
• Top concerns include vendor selection (38%), fraud risk, and internal skills shortages. 
• 58% of banks favour hybrid cloud environments; only 13% are fully cloud-native. 
• Payments-as-a-Service (PaaS) is gaining ground, particularly in Spain and Denmark, though overall adoption remains modest. 

‍What This Means for Merchant Onboarding:

Onboarding teams will need to ensure readiness for new bank infrastructures that support real-time, account-to-account payments. This includes adapting onboarding flows, fraud detection models, and reconciliation processes to meet modern system expectations and regulatory compatibility. 

‍Recommended Actions:

• System Review: Audit current onboarding flows for compatibility with real-time and ISO 20022-based payments.
• Vendor Strategy: Assess payment vendor flexibility and ability to integrate with modern bank APIs.
• Infrastructure Readiness: Ensure your systems can scale with higher transaction volumes and hybrid-cloud environments. 
• Regulatory Alignment: Track SEPA Instant and ISO 20022 readiness to prevent service or compliance disruption.

‍How OnBoard Helps: OnBoard enables seamless onboarding with real-time decisioning, flexible workflows, and API-ready integrations that connect effortlessly with updated banking systems. Its Smart Forms and automated risk engines adapt to evolving payment formats, reducing manual steps while ensuring compliance and speed at scale. Find out more.

Source: Volante Technologies, The Big Survey, 2025

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United Kingdom

Regulation Name: Bank of England Retail Payments Infrastructure Reform

Effective Date: To be confirmed (planned for late 2025)

Issued By: Bank of England

Summary:

‍The Bank of England has taken over responsibility for replacing the UK’s ageing Faster Payments System with a modernised retail payments infrastructure. This initiative aims to support instant account-to-account transactions across both digital and physical environments, reducing reliance on major credit card networks. The reform marks a significant shift towards more efficient, scalable payment systems that can handle growing transaction volumes and evolving market needs.

Key Changes:

• The Bank of England will lead procurement and oversight of a new retail payments system operator, replacing the current “Faster Payments System”.
• The new system will enable instant payments at physical points of sale, expanding use cases beyond online transactions.
• This reform aims to break the duopoly of US card networks (Visa, Mastercard) by offering a domestic alternative with lower fees.

What This Means for Merchant Onboarding:

‍Onboarding teams should prepare for integration with a next-generation payment infrastructure that supports real-time account-to-account payments at point of sale, which may impact payment acceptance and reconciliation workflows. PSPs must also evaluate their system scalability to handle higher transaction volumes and consider interoperability with existing payment systems.

Recommended Actions:

• Process Assessment: Begin assessing current payment acceptance and onboarding processes for compatibility with upcoming instant account-to-account payments at POS.
• Partner Engagement: Engage with banking partners to understand timelines and technical requirements for integration.
• Risk Frameworks: Update risk and fraud frameworks to accommodate new payment flows and operators.
• Customer Communication: Plan customer communication to highlight potential benefits such as faster payments and lower fees.

How OnBoard Helps: OnBoard helps payments providers to navigate the upcoming changes to the UK’s payment infrastructure with real-time underwriting and automated AML, KYC, and KYB workflows to ensure compliance with new regulatory requirements. Its customisable onboarding and automated decision engine streamline integration with real-time, account-to-account payment systems, allowing businesses to quickly adapt while efficiently managing risk and customer approvals.

Source: The Financial Times

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America

United States

Industry Initiative: PayPal x Wix Unified Payments Integration (2025 Expansion)

Effective Date: 23 July 2025 (U.S. merchants)

Issued By: PayPal & Wix

Summary:

PayPal and Wix have deepened their collaboration to deliver a more integrated payments experience for U.S.-based merchants. The new setup embeds PayPal directly into Wix payments, allowing merchants to manage all payment activity, from PayPal wallet transactions to card payments, via a single dashboard. This move is aimed at improving backend efficiency, checkout flexibility, and customer conversion rates.

Key Changes:

• PayPal is now natively embedded within Wix Payments for U.S. merchants. 
• Transactions, chargebacks, and payouts are unified under a single reporting interface.
• PayPal acts as PSP for card processing inside Wix Payments.
• PayPal Pay Later and Venmo are now available at checkout through Wix.
• Wider rollout to international markets expected in future phases.

What This Means for Merchant Onboarding:

The PayPal–Wix integration sets a new benchmark for what merchants expect during onboarding: a unified, embedded experience with instant onboarding and access to multiple payment options. This signals a clear shift. PSPs must move beyond fragmented tools and deliver seamless onboarding that’s integrated into platform ecosystems.

Recommended Actions:

• Redesign Onboarding for Embedded Payment Options: Update merchant onboarding flows to natively support third-party services like PayPal, allowing for instant account linking and setup within platform environments.
• Integrate Unified Payment Reporting: Ensure reconciliation systems can handle consolidated data across wallets, cards, and BNPL products to improve transparency and reduce operational overhead.
• Adapt for Embedded BNPL Compliance: Review your onboarding risk models and disclosures to align with BNPL offerings such as PayPal Pay Later, ensuring regulatory alignment without adding friction.
• Prepare for Embedded PSP Roles: Build infrastructure that supports other PSPs operating within your ecosystem, maintaining control while offering merchants flexibility and speed.

How OnBoard Helps: OnBoard helps PSPs deliver seamless embedded onboarding experiences expected in modern platform ecosystems. With Smart Forms, real-time risk scoring, and automated compliance workflows, PSPs can enable instant merchant activation across wallets, cards, and BNPL products within a single unified flow. It also allows PSPs to operate natively inside third-party platforms while maintaining full control over risk, reporting, and onboarding logic. Curious how it works in practice? Book a demo to see how OnBoard keeps onboarding fast, flexible, and audit-ready.

Source: PayPal & Wix Strategic Integration Announcement

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United States

Industry Initiative: Square Bitcoin Acceptance via Lightning Network (Pilot Launch 2025)

Effective Date: Live for Select Merchants (full rollout by 2026)

Issued By: Block Inc. (parent company of Square)

Summary:

Square has begun piloting native bitcoin acceptance for select U.S. merchants via the Lightning Network. The integration enables faster, low-cost crypto transactions, with BTC payments settling instantly off-chain. A wider rollout across the full Square merchant base is expected in 2026, positioning bitcoin as a viable day-to-day payment option for SMEs.

Key Changes:

• Lightning-powered bitcoin payments now live for initial Square sellers.
• Full rollout to all Square merchants planned within 12 months.
• Off-chain settlement to speed up transactions and lower fees. 
• Block highlights BTC’s role in merchant empowerment and revenue retention.

What This Means for Merchant Onboarding:

Merchant onboarding must now support crypto acceptance as a standard option alongside cards and wallets. PSPs and acquirers should enable merchants to activate Bitcoin payments with wallet setup, fiat conversion, and risk controls built into a single seamless flow.

Recommended Actions:

• Crypto Flow Support: Add native Lightning Network onboarding steps.
• Regulatory Update: Ensure AML/KYC tools cover crypto transactions.
• Reconciliation Logic: Align reporting systems to support BTC-to-fiat conversion. 
• Training Materials: Help merchants understand crypto payments and volatility. 

How OnBoard Helps: OnBoard enables PSPs and acquirers to embed crypto payment setup directly into merchant onboarding flows. With Smart Forms, automated risk scoring, and flexible workflow rules, PSPs can offer wallet setup, fiat conversion preferences, and compliance checks in one unified process without disrupting existing infrastructure.

Source: PYMNTS & CoinDesk Reports

United States

Regulation Name: FinCEN Order on Alternative Collection Method for Tax Identification Number (TIN)

Effective Date: 27 June 2025

Issued By: Financial Crimes Enforcement Network (FinCEN)

Summary:

‍FinCEN now allows banks to collect Tax Identification Numbers (TINs) from authorised third parties rather than directly from customers. This change is designed to ease the onboarding process and reduce administrative burden while keeping strong safeguards against financial crime. Using this alternative method is optional and must meet the existing Customer Identification Programme (CIP) rules.

Key Changes:

• Banks are now permitted to collect TIN information from authorised third-parties, offering an alternative to direct customer collection.
• This alternative must be embedded within a formal, risk-based Customer Identification Programme (CIP) procedure that guides how and when the third-party data is accepted and verified.
• Use of this alternative collection method is optional; banks can continue existing practices if preferred.

What This Means for Merchant Onboarding:

PSPs and acquirers must be ready to support TIN collection through authorised third parties as part of compliant onboarding. Onboarding should be designed to support flexible data intake, including from authorised third-parties, while ensuring all CIP rules are met through controlled, risk-based procedures.

Recommended Actions:

• Process Review: Take time to map out your current TIN collection and spot where third-party checks could simplify things.
• Risk Update: Refresh your risk frameworks to properly include these new data sources and maintain strong controls.
• Team Training: Make sure your teams know what’s changed and how to handle the new verification options confidently.
• Tech Integration: Coordinate with your tech providers early to smoothly bring in API-based third-party TIN checks.

How OnBoard Helps: OnBoard enables PSPs and Acquirers to embed third-party TIN collection into onboarding workflows with Smart Forms and rule-based verification. Its automated compliance engine ensures all data sources meet CIP requirements without disrupting the overall onboarding process. See this in action now.

Source: Financial Crimes Enforcement Network (FinCEN)

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United States

Regulation Name: ISO 20022 Implementation for Fedwire Funds Service

Effective Date: 14 July 2025

Issued By: Federal Reserve Financial Services (FRFS)

Summary:‍

On 14 July 2025, the Federal Reserve implemented the ISO 20022 messaging standard for the Fedwire Funds Service. This update enhances payment messages by providing richer data and improving interoperability between financial institutions. It also supports stronger compliance capabilities and greater transparency, aligning US payment systems with global standards. 

Key Changes:

• Fedwire Funds Service now operates exclusively using the ISO 20022 message format.
• Existing Fedwire software and infrastructure remain unchanged; only message content and structure have been updated.
• Preparedness checklists were issued to help different FedLine users confirm readiness.

What This Means for Merchant Onboarding:

Onboarding systems used by PSPs and acquirers that process Fedwire transactions must fully support the ISO 20022 format to capture richer payment data and strengthen fraud detection and compliance processes.

Recommended Actions:

• Post-Implementation Review: Verify all onboarding systems correctly handle ISO 20022 payment data.
• Ongoing Monitoring: Continuously monitor payment message processing and update risk frameworks as necessary.
• Vendor Collaboration: Stay in close contact with payment vendors to ensure continued compliance with the new format.
• Training Refresh: Update teams on operational impacts related to ISO 20022 adoption.

How OnBoard Helps: OnBoard supports large wire-based merchant onboarding with Smart Forms that capture funding details and trigger real-time compliance checks. Its automated risk engine links wire transactions to identity verification and risk scoring, while smart dashboards give credit and risk teams full visibility into reserve validation, escrow setup, and onboarding status.

Source: Federal Reserve Financial Services (FRFS)

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Canada

Initiative Name: Real-Time Rail (RTR) Launch and Stablecoin Regulatory Framework

Effective Date: Q3 2026 (RTR launch); technical build expected in Q3 of 2025

Issued By: Payments Canada, Bank of Canada, Office of the Superintendent of Financial Institutions (OSFI)

Summary:

‍Canada will launch the Real-Time Rail (RTR) system to enable instant, data-rich payments 24/7 starting Q3 2026. Alongside this, federal authorities are developing a clear regulatory framework for stablecoins to support innovation while managing associated financial and operational risks. These changes aim to modernise payment infrastructure and integrate new digital currencies alongside traditional rails.

Key Changes:

• RTR will enable irrevocable, real-time payments with richer transaction data.
• Stablecoins will transition from investment product status to a regulated payment instrument category.
• New rules will clarify stablecoin issuance, oversight and risk management requirements.
• RTR, stablecoins and future CBDCs will be designed to operate in an interoperable way within Canada’s payments ecosystem.

What This Means for Merchant Onboarding:

‍PSPs will need to update their systems to handle real-time, irrevocable payments and ensure seamless integration with stablecoin and account-to-account payment options. Additionally, as regulatory frameworks evolve, PSPs will need to manage compliance and risk by staying informed about stablecoin regulations and ensuring their systems support new payment methods while safeguarding financial stability.

Recommended Actions:

• Policy Review: Review and update onboarding policies to include RTR and stablecoin acceptance criteria.
• Risk Framework: Enhance risk frameworks to address compliance and fraud risks related to stablecoins.
• Workflow Mapping: Adapt onboarding workflows to account for real-time funding validation, account-to-account setups, and new stablecoin wallet structures.
• Tech Integration: Collaborate with technology partners to integrate API-driven real-time payment capabilities.
• Regulatory Monitoring: Monitor ongoing regulatory developments to stay ahead of compliance requirements.

How OnBoard Helps: As Canada prepares to launch Real-Time Rail, OnBoard enables PSPs and acquirers to build RTR-ready onboarding flows that capture ISO 20022-compliant data and support 24/7 merchant activation. Its automated decision engine applies real-time risk rules and identity checks, ensuring merchants are verified, funded, and ready to transact within seconds of onboarding.

Source: Centre for International Governance Innovation (CIGI)

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APAC

India

Regulation Name: SEBI Mandate on New UPI IDs with ‘@valid’ Handle

Effective Date: 1 October 2025

Issued By: Securities and Exchange Board of India (SEBI)

Summary:

‍SEBI requires registered market intermediaries to adopt new UPI IDs featuring the ‘@valid’ handle to curb trading fraud and enhance payment security. Alongside this, SEBI is developing the ‘SEBI Check’ tool, allowing investors to verify the authenticity of UPI IDs and associated bank details before transactions. This initiative aims to improve investor confidence by ensuring funds are transferred only to verified entities.

Key Changes:

• Registered intermediaries must obtain and use UPI IDs with the ‘@valid’ handle for capital market transactions.
• Investors can verify UPI IDs and bank details using the ‘SEBI Check’ tool via QR code or manual entry.
• Payment transactions to these UPI IDs will display a green verification icon for easy recognition.
• Self-certified syndicate banks must verify intermediaries before issuing the new UPI handles.

What This Means for Merchant Onboarding:

While this update primarily impacts intermediaries in India’s capital markets, it also affects onboarding for PSPs and acquirers who serve them. Onboarding systems may need to validate ‘@valid’ UPI IDs to ensure clients are SEBI-compliant.

For PSPs working with these intermediaries, onboarding and payment teams should ensure merchants update to the new verified UPI IDs to maintain compliance and reduce fraud risk. Customer education around using the ‘SEBI Check’ tool will also help build trust and transparency. Systems may require updates to display verification icons and validate UPI handles in real time.

‍Recommended Actions:

• Update Procedures: Ensure onboarding workflows for SEBI-registered intermediaries include validation of the new ‘@valid’ UPI ID format.
• Partner Coordination: Work with syndicate banks and payment partners to verify intermediary credentials prior to UPI handle issuance.
• System Enhancements: Update onboarding platforms to validate ‘@valid’ UPI handles and support display of verification icons in real time.

How OnBoard Helps: OnBoard enables PSPs and acquirers to onboard SEBI-registered intermediaries with Smart Forms that capture and validate ‘@valid’ UPI handles in real time. Its rule-based workflows can automate credential checks, integrate with SEBI Check tools, and ensure only verified entities complete onboarding in full compliance with the new mandate.

Source: Securities and Exchange Board of India (SEBI)

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Singapore

Regulation Name: MAS Composition Penalties for AML/CFT Breaches by Major Payment Institutions

Effective Date: 27 June 2025

Issued By: Monetary Authority of Singapore (MAS)

Summary:

‍MAS has imposed composition penalties totalling S$960,000 on five Major Payment Institutions (MPIs) for failing to meet AML/CFT requirements under MAS Notice PSN01. The breaches involved inadequate customer due diligence and missing information in cross-border wire transfers, exposing risks of financial crime. MAS expects senior management to strengthen oversight and remediation, signalling heightened regulatory scrutiny on AML controls.

Key Reminders:

• MPIs must obtain and verify customer residential addresses and beneficial ownership information.
• Customer screening against ML/TF risk lists is mandatory before establishing business relations.
• Proper verification of authorised representatives is required with documentary evidence.
• Cross-border wire transfers must include full originator and beneficiary information to ensure traceability.
• Senior management is expected to actively oversee AML/CFT control effectiveness and remediation efforts.

What This Means for Merchant Onboarding:

‍Onboarding teams face increased expectations for thorough customer due diligence, including screening connected parties and beneficial owners. Your onboarding workflows should capture and verify detailed customer data to meet MAS standards. Cross-border payment transparency requirements mean systems must handle enhanced wire transfer data accurately. 

Recommended Actions:

• Gap Analysis: Conduct a gap analysis on current AML/CFT controls against MAS Notice PSN01 requirements.
• Process Update: Update onboarding processes to capture and verify full customer and beneficial ownership information.
• Screening Enhancement: Enhance screening mechanisms to include ML/TF risk databases for customers and related parties.
• Wire Transfer Compliance: Ensure wire transfer instructions consistently contain originator and beneficiary details for cross-border payments.
• Management Oversight: Reinforce senior management oversight and establish clear remediation tracking protocols.

How OnBoard Helps: OnBoard ensures compliance with MAS Notice PSN01 by using its automated AML screening engine to verify customers and connected parties against watchlists before onboarding. Its decision engine and risk-based workflows enforce data completeness, including ownership verification and cross-border wire transfer traceability.

Source: Monetary Authority of Singapore

Ready to simplify onboarding and stay ahead of global regulatory change? Discover how OnBoard helps you manage complexity, reduce compliance risk, and adapt quickly - without the manual effort.

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