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Not really following your logic. Why do you care as a customer if there’s variation in KYC requirements from vendor to vendor?

Also not sure why this makes handling ID information “safer.” The vendor using this service still has access to all the images (ID and selfie) and data returned to them from this API that they can store a copy of on their own servers forever. This is not like your Stripe analogy where you only get the token and not the actual card number.