Banking as a Service (BaaS) is a business model where a bank or other financial institution extends its financial operations and infrastructure to serve non-financial client organizations (such as retailers and utility companies). BaaS enables you to embed financial products into your services without having to launch and operate your own financial institution and go through the regulatory compliance that would involve.

With Pismo's BaaS you can:

• Set up your organization, programs, and customer accounts with Pismo.
• Implement Pix instant payments (Brazil).
• Pay bank slips (Brazil) - Bank slips are also known as boletos in Brazil.
• Execute P2P - Pismo account to Pismo account transactions.
• Perform Cash-out transfers to external accounts.
• Get Banking reports - Account fees and account income reports.
• Other services depending on what your provider allows and supports.

Pismo's BaaS benefits include:

• Easy regulatory compliance

• Account management, monitoring, and reporting.

• Transaction validations, including anti-fraud checks and Know Your Customer (KYC). See About KYC for more information.

Getting started

Getting started with Pismo's BaaS involves the following steps:

Step 1 - Partner with a provider

Set up a relationship with one of the payment service providers (PSP) Pismo works with and that has approval from the Central Bank of Brazil (BACEN). These currently include Pay2All - a payment institution BTG Pactual created, and Celcoin

Your Pismo representative can work with you on getting set up with a PSP.

Step 2 - Register your provider relationship with Pismo

Call the Create provider credential endpoint to register your provider relationship with Pismo.

Step 3 - Set up event notifications

Set up data and reporting to receive notifications (events) about Pismo account/customer setup and transaction success/failure.

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Event delivery

BaaS clients receive the same events as regular clients. Your provider does not receive any events unless you are working with Pay2All. In that case, both you and Pay2All receive all events.

Step 4 - Set up your org/programs/accounts/customers

Set up your organization, programs, accounts and customers with Pismo. Work with a Pismo representative to set up your organization. Once you do that, you can Create accounts and Create customers

See Core objects for more information and getting started. The Pismo Control Center allows you to do a lot of this setup through a convenient UI.

Step 5 - Begin making Pismo API endpoint calls

Begin making Pismo endpoint calls.

The following APIs are associated with BaaS:

• Banking authorization - Register provider relationship with Pismo
• Pix payments - Brazilian instant payment system
• Pix management - Manage Pix keys, claims and infraction reports
• QR Code (dynamic) - Generate QR Codes for Pix
• BR Code - Generate BR Codes for Pix
• Integrated payments - Bank slips (boletos)
• Payments - P2P transactions
• Banking reports - Account fees and account income reports.

Pay2All account update restrictions

Once an account is created, Pay2All only allows changes to the customer's e-mail address and phone number. Talk to your Pay2All representative about any other restrictions.

About KYC

Know Your Customer (KYC) is a process that financial institutions and other businesses use to verify the identity of their customers. In the context of transactions, KYC is crucial for preventing fraud, money laundering, and other illicit activities.

Here's a brief overview of how KYC works in transactions:

1. Documentation - Customers are required to provide certain documents to establish their identity. This may include government-issued photo identification (such as a driver's license or passport), proof of address (like a utility bill or bank statement), and, in some cases, additional information depending on the jurisdiction and the financial institution's requirements.

2. Verification - The financial institution verifies the submitted documents are verified to ensure that they are legitimate and belong to the individual seeking the credit card. This process may involve checking the information against various databases.

3. Customer information - Financial institutions collect and maintain detailed information about their customers. This includes personal information, contact details, and transaction history. Keeping accurate and up-to-date records helps in monitoring and managing risks associated with credit card transactions.

4. Risk assessment - KYC is an essential component of risk management for financial institutions. By understanding their customers, institutions can assess the level of risk associated with each customer and transaction. Unusual or suspicious activities can be flagged for further investigation.

5. Compliance with regulations - KYC is often mandated by regulatory authorities to ensure that financial institutions are taking appropriate measures to combat fraud and money laundering. Institutions must adhere to specific guidelines and regulations set by the relevant authorities.

In credit card transactions, KYC helps protect both the customer and the financial institution. It minimizes the chances of identity theft, unauthorized transactions, and other fraudulent activities. Additionally, it plays a crucial role in regulatory compliance, promoting a more secure and transparent financial system.