PYMNTS discussion: Is Instant Onboarding a Red Herring
Rich Aberman, Chief Strategy Officer and co-founder of WePay had a recent interview with Karen Webster of PYMNTS.com about the pros and cons of instant onboarding. Instant onboarding — the ability for a merchant to complete a simple digital application, then instantly process payments — has been heralded as the best thing to happen in payments and to merchants in decades.
Rich Aberman isn’t so sure. Instant onboarding creates a slick experience for a business interested in obtaining a merchant account, he told Karen Webster in the latest episode of their Unscripted podcast series. However, it’s not the “magical secret sauce” it’s often purported to be.
The real “secret sauce,” he said, is having a risk engine that can access and act on data about the merchant’s processing history once they are up and running. That is, a system that is as transparent as it is dynamic so that merchant expectations are always well-attuned to how their businesses will be managed on that platform, based on their business performance, and so that fraud can be spotted and responded to in real time.Listen to “WePay On Why Instant Onboarding’s Hype Goes Overboard” on Spreaker.