Building trust and retaining customers is a tedious process for the digital payment industry which causes headaches for both clients and respective service providers. Furthermore, with a variety of legal obligations and marketplace ethics to be met, identity verification gets overwhelming. With complex and time-taking onboarding processes, customers are more likely to abandon the process and drive away.
The global payment industry is forecasted to make a massive hit by reaching $180.2 billion by 2026. Due to the availability of convenient transactions and other digital funds transfer methods, customers are more likely to vest their trust in online payment systems. However, in this run, combatting fraud still remains a tiresome fight. This blog discusses how AI-powered ID verification solutions safeguard the digital transaction industry.
Digital Onboarding – Balancing Operations for the Payment Industry
High churn rates directly add to driving financial losses for digital payment service providers. Similarly, providing an enhanced experience without compromising security, privacy, and the overall journey of the customer is still a challenge. With strict Know Your Customer (KYC) and identity theft protection requirements in place such as FATF’s 40 Recommendations, it becomes somewhat tricky to streamline every operation.
Identity authentication does not refer to a single event however it is a long-term process that defines customers’ post-onboarding journey. AI-powered IDV solutions are streamlining identification for digital payment service providers by limiting hassle. Integrating real-time verification, seamless document submission, and instant result fetching is sure to attract a huge user base in this industry. Further details regarding steps identity verification services use to secure the digital payments sector’s operations are in the next section:
Steps for Touchless and Risk-Free Onboarding
Online identity verification services provide quick friction-free account opening. This helps customers make more secure transactions in less time. While manual identification can take weeks to accurately validate clients, their backgrounds, and risk score, AI-powered IDV tools dispense instant results. Moreover, digital payment service providers can keep security intact while limiting the chances of compliance failure. The identity authentication involves the following easy and user-friendly steps:
- Upon arrival, the particular site displays an online form in front of end-users where they fill in their Personally Identifiable Information (PII). these details include full name, date of birth, address, social security number, and others.
- The second step of digital onboarding involves asking users to upload pictures of supporting government-issued documents such as ID cards, driving licenses, passports, utility bills, insurance papers, rental/ownership agreements, and others. These serve as evidence for identity authentication.
- In this step, the AI-powered OCR tools extract data from documents to validate templates and their legitimacy.
- Moving further, for liveness detection and to ensure the presence of customers during onboarding, the system asks for a real-time selfie. Afterwards, the AI-powered ID verification tools map facial features and cross-check them against documents.
Identity Verification Services – Streamlining Online Transactions
The increased threat of cybercrimes, identity theft, and financial crimes are further leading the digital payment industry to serious consequences. Lax customer identification checks, client drop-off, and chances of legal repercussions are forcing these service providers to integrate better solutions. Furthermore, to retain balances within their operations and ensure more secure growth, AI-powered ID verification services are allocating various benefits. More details include:
Remote Operations for Hassle-Free Onboarding
AI-powered biometric identity verification systems leverage remote account creation for global customers. This not only ensures more revenue generation but adds to attaining a huge user base. Furthermore, digital payment service providers can tick out the hassle clients face due to complex identification steps. A real-time selfie, facial feature recognition, fingerprint analysis, and other such solutions make identity authentication easier. They further ensure accurate and quick validation of transactions.
Customer Engagement to Ensure Success
Time-taking onboarding, complex ID verification steps, and slow processing are more likely to frustrate customers. This will ultimately result in client drop-off while increasing reputational damages for the digital payment industry. While lax IDV checks increase the risks of synthetic identity fraud, AI-powered customer verification tools heighten prevention against criminals. Moreover, solutions such as facial features and fingerprint recognition enable users to authenticate transactions in less time. Hence, the digital payment industry can attract, engage, and retain more customers.
AI-powered identity verification services unlock the global potential of the digital payment industry. They authenticate customers belonging to any region with more accuracy, convenience, and speed. This helps in instant and secure onboarding. Moreover, as the digital payment industry is near to becoming a safe haven for more criminals, they require robust biometric identity verification systems for integrating enhanced security. Ultimately, online transaction service providers can stay put with legal standards while improving customers’ journey.