Socure has released a new identity verification solution designed specifically for the Buy Now, Pay Later (BNPL) sector. The solution leverages the technology in Socure’s ID+ platform, and modifies it to recognize (and stop) the unique patterns of BNPL fraud.
According to Socure, the platform can reduce BNPL fraud rates by as much as 40 percent, while still delivering a better user experience for legitimate customers. To that end, the platform will automatically approve as many as 97 percent of the people who want to make a BNPL purchase, including those with a limited credit history.
With that in mind, Socure believes that its system will help boost profits while increasing conversion rates. The ID+ onboarding solution uses a combination of face and document recognition to match the face of a new customer to the image on a photo ID.
“The growing popularity of BNPL over the past couple of years has attracted the attention of fraudsters as well,” said Aite Group Research Director Julie Conroy. “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.”
“Buy Now, Pay Later is rapidly becoming a key driver for conversions and growth for merchants,” added Socure Founder and CEO Johnny Ayers. “It represents a huge opportunity as well as a unique challenge that requires instant and accurate onboarding, a frictionless customer experience, and fraud protection.”
Socure has a current valuation of $1.3 billion after bringing in $100 million in a round of Series D funding that closed in March. The company also brought in $35 million back in August, as well as an undisclosed sum from Capital One in June. Socure reported exceptional growth in the past year, as the demand for remote onboarding solutions increased during the pandemic.
July 12, 2021 – by Eric Weiss