As BNPL Grows, Source Become the First ID Verification Solution for Alternative Payment Providers

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Socure, the platform for digital identity verification and trust, has announced the introduction of the first identity verification and fraud solution purpose-built for the Buy Now, Pay Later (BNPL) industry.

The solution leverages the technology and data currently used by more than 100 top BNPL providers, alternative payment providers, fintechs, banks, and credit card issuers. Socure developed the solution using deep identity and transaction data that enables multiple leading BNPL providers to attract new merchants, power their growth by converting more qualified shoppers in real time, and reduce loss rates.

At the core of Socure’s BNPL-specific solution are powerful identity verification capabilities combined with a fraud model fine-tuned with order- and account-specific data types that evaluate fraud signals at the point of transaction. The solution helps to identify and convert more new shoppers, including demographics with limited credit history and data during onboarding, while preventing fraud with unmatched accuracy. The Socure solution has proven to safely boost online account auto-acceptance rates by up to 97% while reducing fraud-related loss rates by up to 40% vs. legacy strategies that combine various individual point solutions across email, phone, device, behavioural, and velocity, which result in unnecessarily high false-positive rates.

The BNPL solution is built on the Socure ID+ platform, which achieves industry-leading accuracy and breadth of coverage of good and bad identities and models continuously updated with performance feedback data from Socure’s vast network of customers.

Buy Now, Pay Later is rapidly becoming a key driver for conversions and growth for merchants. It represents a huge opportunity as well as a unique challenge that requires instant and accurate onboarding, a frictionless customer experience, and fraud protection,” said Johnny Ayers, Founder and CEO of Socure. “Socure’s industry-first BNPL-specific solution is used by many of the leading BNPL providers to power growth and deliver a seamless consumer purchase experience.”

Ayers went on to say, “The Buy Now, Pay Later industry grew over 80% in the US in 2020 alone, and companies are now looking for ways to maintain that incredible growth. As competition heats up and new entrants emerge, BNPL providers are looking for ways to reduce friction and gain a competitive advantage, especially as more than 45 million people ages 14 and older will use BNPL services this year. That’s where Socure comes in. As the only complete identity verification and trust platform in this industry, we offer that critical advantage by enabling our customers to automatically onboard a higher percentage of consumers of all ages and demographics and protect revenue from fraud losses, all from a single solution response delivered within milliseconds.”

“The growing popularity of BNPL over the past couple of years has attracted the attention of fraudsters as well,” said Julie Conroy, Research Director at Aite Group. “This increases the urgency for a BNPL fraud solution that can accurately verify identities and detect anomalies while not putting barriers in front of good prospective customers.”

  • Francis is a junior journalist with a BA in Classical Civilization, he has a specialist interest in North and South America.

https://thefintechtimes.com/as-bnpl-grows-source-become-the-first-id-verification-solution-for-alternative-payment-providers/