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Why KYC Verification Matters in B2B Payments

KYC, AML, compliance… Sounds like a headache? We get it. But what if Know Your Customer verification wasn’t just a regulatory box to tick but a lever for speed, security, and trust? Here’s how.

Illustration avec le mot KYC en gros

Regulatory burden. Cost center. Time waster.

That’s how most people see KYC.

Know Your Customer (KYC) verification serves a regulatory purpose, sure. But it also plays a crucial role in risk management and the reliability of your business relationships:

  • Identify your counterparties with precision
  • Prevent fraud and payment errors
  • Show partners that your processes are rock-solid

And let’s be honest, the risks are growing.

Synthetic IDs. Deepfakes. AI-generated documents.

Fraudsters are getting smarter. And fast-moving platforms – where money changes hands in real time – are prime targets.

Bottom line: poor controls mean your treasury takes the hit.

To meet the highest AML (Anti-Money Laundering) and counter-terrorist financing standards, Aria holds itself to the same requirements as a bank. But instead of adding friction, we’ve automated every step – for your teams and your partners.

The result? Tighter security and faster onboarding.

Entrust reported a 244% increase in fake digital IDs between 2023 and 2024.

KYC, KYB, KYS: What’s What in B2B?

In B2B, identity verification comes in different flavours:

  • KYC: Know Your Customer – for individuals (e.g., company directors or beneficial owners)
  • KYB: Know Your Business – to verify legal entities
  • KYS: Know Your Supplier – particularly useful for complex supply chains

Different names, same goal: trust.

Let’s break it down with a typical marketplace flow:

  1. Sign-up
    A supplier joins your platform.
  2. Document submission
    They upload incorporation docs, ID, bank details.
  3. Automated checks
    Documents are cross-checked with public and private databases.
  4. Security screening
    We scan for sanctions, blacklists, politically exposed persons (PEPs).
  5. Risk scoring
    We assign a risk level. Higher score = deeper review.
  6. Approval & monitoring
    Once cleared, the partner is onboarded and monitored continuously.

Controls adapt to your risk exposure. But when you’re financing invoices worth tens of thousands?

A fake company isn’t just a glitch. It’s a disaster.

KYB vs. KYC: Why You Need Both

Think of KYB and KYC as two sides of the same shield.

  • KYB asks: Is this business legit? Registered? Active?
  • KYC asks: Who’s behind it – and are they who they say they are?

Do one without the other, and you might verify a legitimate company… owned by someone on an international sanctions list.

That’s not a risk worth taking.

Together, they create multi-layered defense:

  • KYB = “Is this company real and trustworthy?”
  • KYC = “Are the people behind this company really who they claim to be?”

In most cases, one doesn’t exist without the other.

KYC/KYB Verification in Action: Marketplaces, SaaS, and Corporates

Marketplaces

One dodgy seller can damage your entire credibility. KYC limits risks from the get-go, filtering risky partners right at registration. Goal: prevent fraud (undelivered services, masked identities, fake IBANs).

Most importantly: stop your support teams from becoming full-time detectives.

When disputes arise between buyer and seller, good verification enables quick resolution: was the partner really who they claimed to be?

SaaS Platforms

Embedded payments = embedded responsibilities.

Even if your platform isn’t subject to KYC by default, the moment funds move through your interface, identity checks kick in.

For software companies, client onboarding is make-or-break. That’s where Aria comes in.

We embed KYC directly into your user journey with zero disruption.

Your users don’t notice it? That’s the sign it’s done right.

Corporates

When you’re managing dozens of business units, multiple currencies, and international suppliers, one fake payment can cause major damage.

Smart KYC processes help you:

  • Avoid costly payment errors
  • Cut down supplier disputes
  • Control cash outflows across departments

That’s why we’ve embedded KYC into our treasury management solution.
You get fast onboarding, full traceability, and no admin overload.

Beyond Compliance: A Tool to Prevent Fraud and Manage Risk 

KYC verification isn’t just a box to tick—it’s also a management tool that helps you:

  • Assess risks by identifying problematic actors upfront, before fake invoices or defaults impact your cash flow
  • Prevent fraud by stopping shell companies or fake businesses from receiving money they shouldn’t
  • Automate onboarding by eliminating friction and reducing human errors
  • Build trust and protect reputation by showing partners (investors, bankers, analysts) that you have solid compliance practices
  • Prevent disputes through reliable, up-to-date data to limit invoice contestations and payment delays

How Aria Co-Builds KYC Processes with Clients

At Aria, KYC isn’t limited to standardized verification. It’s a key link in our financing chain, designed to adapt to each partner.

From onboarding, we co-build KYC journeys with our clients: which control points to activate, when, for which users? Everything is modular. Our system relies on complete API automation, but remains flexible enough to integrate perfectly into your UX.

The goal? Smooth, fast, compliant KYC that protects your users, your platform, and Aria.

No duplicate verifications. No friction. Just one smart flow that speeds up payments while staying compliant.

The result: a robust trust foundation, invisible to the end user, but essential for enabling real-time financing.

FAQ – What You Need to Know About KYC

What is KYC verification?

KYC (Know Your Customer) is the process of collecting and verifying identity documents and legal info from customers and suppliers. It ensures funds go to legitimate recipients, preventing fraud and money laundering.

What are AML regulations in the UK/EU?

The UK and EU require financial institutions and regulated entities to verify customer identities, monitor transactions, and store audit trails — all under anti-money laundering (AML) and counter-terrorist financing laws.

How does KYC build trust in B2B?

Transparent, rigorous KYC shows that your business takes compliance seriously. That builds credibility with suppliers, clients, and partners – and smooths your financial operations.

How does Aria make KYC a competitive edge?

Aria integrates KYC directly into your tools (ERP, SaaS, etc.) and automates each step: collection, document verification, banking control. That means less manual work, faster payments, and airtight compliance.

Click. Pay. Done.

Getting started with Aria is easy — just like our payments.
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