Socure, the leading platform for digital identity verification and trust, today 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, behavioral, and velocity, which result in unnecessarily high false-positive rates.
“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.”
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.
“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.”