KYC + SCA: A Match Made for the Future of Payments

If your institution only relies on partial checks—perhaps a single ID scan on day one, or a quick, app-based SCA flow for logins—it leaves room for fraudsters. By pairing advanced KYC and SCA from the start, you create a robust chain of trust that ensures not only that the right person is logging in, but that they were thoroughly verified as the right person at the outset. This becomes paramount during re-enrollment, where an existing account, possibly holding significant balances, can become a prime target for bad actors.

At first glance, the KYC process can appear to add friction to the customer journey: scanning IDs, verifying addresses, doing liveness checks to thwart deepfakes, and so on. However, the right KYC solution actually reduces friction. Through automated document verification and orchestrated failover to multiple data sources, onboarding can be both thorough and painless. This is what we aim to achieve with our soon-to-be-announced KYC partner—offering global coverage and multi-layered identity checks, all while keeping the process swift for the end user.

In our earlier post, “Establishing Trust Anchors: The Link Between SCA and KYC,” we explained the concept of a trust anchor—a cryptographic certificate that vouches for the validity of a device or user. Once a user’s ID is verified via KYC, our SDK generates a private key and public certificate, effectively binding that validated identity to the user’s device. This trust anchor is the backbone of SCA. If the identity is compromised, re-enrollment becomes a high-risk opportunity for fraud. But with a strong KYC solution in the mix, any attempt to re-enroll on a new device triggers a robust verification flow, preventing stolen credentials or deepfake-laden takeovers.

This synergy between KYC and SCA goes beyond mere compliance. By using the device’s cryptographic identity, we confirm that only someone who has legitimately passed KYC can authenticate future transactions. The result is a closed-loop system: thorough identity checks at the start, repeated SCA verifications throughout the account lifecycle, and safe re-enrollment if or when the user switches devices.

By integrating KYC closely with the authentication process, banks, fintechs, and other regulated businesses gain access to:

• Automated Global Coverage: Over 160 country databases, ensuring you can onboard legitimate customers from virtually anywhere while meeting local compliance requirements.
• Speed and Accuracy: Failover workflows and waterfall checks so valid customers sail through, while suspicious users are flagged for deeper manual reviews.
• Future-Proofed Compliance: Real-time updates to regulatory changes, plus integrated AML, fraud prevention, and ongoing monitoring.
• Frictionless Experience: Seamless document verification, facial comparison, and liveness detection that limit user drop-offs yet maintain airtight security.

Tie this to our robust approach to SCA, and you have a potent blend of identity assurance and transaction-level authentication. In many cases, the cost of additional KYC steps is more than offset by lowered drop-offs, reduced fraud exposure, and the peace of mind that comes from knowing the individuals behind your user accounts.

As digital payments continue to evolve, the lines separating identity verification, transaction authentication, and user experience blur further. Customers demand instant onboarding and near-invisible authentication, yet regulators insist on advanced risk controls and data protection. By merging state-of-the-art KYC with SCA, you can stay ahead of both demands without compromising on either security or customer satisfaction.

Whether you’re a challenger bank looking to grow rapidly, a traditional institution embracing digital transformation, or a fintech aiming to expand internationally, integrating KYC and SCA at every stage of the customer journey is no longer optional—it’s the new baseline. With the right technology and partners, you can fortify trust at onboarding, maintain it during every transaction, and safeguard it through every device change or account update. And in the fast-moving world of payments, trust is the ultimate currency.