Is this payment setup compliant for a marketplace?

[User_6b1d7b32]

U

User_6b1d7b32
PARTICIPANT
February 17, 2025 at 8:17 pm

I’m planning to build a marketplace where vendors can sell their products, using Razorpay for payment processing. However, I want to avoid requiring vendors or customers to go through KYC on Razorpay. Instead, I’ll collect payments on my platform and then distribute the proceeds to the vendors based on their sales. Would this setup raise any compliance or legal concerns?

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[User_6bd9da61]

U

User_6bd9da61
PARTICIPANT
February 18, 2025 at 12:41 am

Check with your CA. Razorpay offers a Route product for exactly this usecase which requires minimal KYC I think. Otherwise, you’ll need a nodal account and lots of compliance headache to ensure your books are clean. Ask your CA.

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