How is this Company avoiding KYC for Debit Cards?

[whocares77]

Hey everyone,

I came across an interesting situation and wanted to get your thoughts.

Company A offers debit cards from a well-known card issuer—without any KYC or identity checks. No verification, no documents, nothing.

Company B, seeing this, contacts the same card issuer, hoping to offer the same service to their own customers. However, the card issuer states in calls and emails that offering debit cards without KYC is not possible.

So the big question is: How is Company A bypassing or evading the KYC process?

Would love to hear your theories! Is there a loophole they're using, or something shady going on?

 

[C_ooo_C]

Honestly, it sounds like Company A might be leveraging a weaker banking partner in a jurisdiction with very loose or poorly enforced compliance laws.. maybe somewhere like Nigeria or similar regions where regulatory oversight isn't that strong.
We've seen similar cases before: sometimes small Electronic Money Institutions (EMIs) operate behind larger banks like Union Bank of Nigeria or Access Bank, offering cards without proper KYC.
Eventually, once regulators notice, these setups usually get shut down or heavily restricted, leaving companies and users stuck.

In these situations, both the users and the people behind the service usually know it's a temporary solution.. and when it eventually dies, another one typically pops up to replace it.

It’s just part of the cycle in this kind of gray market.

 

[lightshinesagain]

Whats so special about this? Lot of under developed countries do this. I remember indian company paytm did this exact same thing.

Then, their govt flagged it and now the whole company is in shambles. All the accounts which has dubious kyc are blocked.
As far , how this has happened. Talk to general manager, talk to bank employees, they will tell you the loopholes and whom to bribe.

 

[C_ooo_C]

You're right that it’s very common in underdeveloped markets.
But in many of these cases, it’s not only about bribery or corrupt employees.
Often the companies structure their programs specifically to fall under regulatory thresholds.. like offering prepaid cards under a certain balance limit, or using EMI partners that technically shift the compliance burden.
They know from the start that these setups won’t last forever.
The goal isn’t to build something permanent.. it’s to maximize volume while the window is open.
When the banking partner gets flagged or the government steps in, they simply move to a new partner or rebrand under a new entity.
It’s not seen as a failure.. it’s part of the business model.

 

[lightshinesagain]

You're right that it’s very common in underdeveloped markets.
But in many of these cases, it’s not only about bribery or corrupt employees.
Often the companies structure their programs specifically to fall under regulatory thresholds.. like offering prepaid cards under a certain balance limit, or using EMI partners that technically shift the compliance burden.
They know from the start that these setups won’t last forever.
The goal isn’t to build something permanent.. it’s to maximize volume while the window is open.
When the banking partner gets flagged or the government steps in, they simply move to a new partner or rebrand under a new entity.
It’s not seen as a failure.. it’s part of the business model.

I agree with you. I have a feeling, you can get this info by bribing right people.