Id verification, compliance, and threat decisioning platform Socure has acquired Purchase Now Pay Later (BNPL) shopper credit score database, Qlarifi. Phrases of the deal weren’t disclosed.
The acquisition will create a unified, identification, anti-fraud BNPL credit score infrastructure to assist shoppers construct credit score responsibly.
New York-based Socure has been a Finovate alum since 2013. Johnny Ayers is Founder and CEO.
International identification, compliance, and threat decisioning platform Socure has acquired real-time Purchase Now Pay Later (BNPL) shopper credit score database, Qlarifi. The mixture will create a unified identification, anti-fraud BNPL credit score infrastructure serving to shoppers construct credit score responsibly, enabling lenders to confidently provide financing to extra certified prospects, whereas offering transparency and elevated shopper safety that regulators more and more demand.
“BNPL has outgrown the legacy techniques that had been by no means designed to assist their revolutionary lending merchandise,” Socure Founder and CEO Johnny Ayers mentioned. “On the identical time, shoppers deserve a protected path to construct credit score, lenders want real-time visibility to scale back fraud and threat, and regulators require transparency and reporting. Qlarifi constructed the primary real-time BNPL shopper credit score database, and by combining it with SocureID and our Id Graph, we are able to ship the unified infrastructure that every one market individuals have been asking for.”
Purchase Now Pay Later is a rising part of the e-commerce ecosystem, with practically 6% of all on-line transactions within the US counting on BNPL. With development of greater than 20% within the US, spending on BNPL is poised to high $700 billion globally by 2028. The rise of BNPL presents a problem to each standard credit score reporting techniques and infrastructure, nonetheless. These techniques weren’t constructed for the type of excessive frequency, small greenback quantity lending choices made in milliseconds that characterizes BNPL. Furthermore, lenders have little visibility into the creditworthiness of debtors, particularly in terms of cross supplier visibility. This could expose retailers to important losses and even elevated fraud charges. Moreover, not like different credit score schemes, BNPL additionally tends to go away shoppers with out a path to construct credit score.
In response, Qlarifi’s platform allows BNPL suppliers to securely lengthen financing to certified prospects, whereas figuring out high-risk conduct similar to mortgage stacking and monetary crime similar to first-party fraud. Already piloted successfully with its companions in Europe, Qlarifi is designed particularly to assist lenders defend their prospects from overextension and cut back the chance for BNPL suppliers. Built-in with Socure’s Id Graph intelligence and RiskOS decisioning engine, lenders will be capable to validate identification throughout BNPL suppliers, allow skinny file prospects (these with restricted credit score historical past) to entry credit score responsibly, and cut back fraud-related fee prices for retailers.
“We constructed Qlarifi to unravel a really actual ache level: the shortage of infrastructure to guard shoppers from overextending themselves throughout a number of BNPL suppliers,” Qlarifi CEO and Co-founder Alex Naughton mentioned. “By becoming a member of forces with Socure, we now have their great industrial scale, stability sheet, and world-class analytics behind us to construct the infrastructure that can allow accountable lending at scale and display to regulators that the trade can defend shoppers whereas increasing entry to credit score.”
Headquartered in London and based in 2023, Qlarifi provides a BNPL shopper credit score database, offering lenders with BNPL transaction historical past information to allow them to make extra knowledgeable underwriting choices. The answer helps shoppers entry the correct credit score merchandise for his or her wants, offers enhanced fraud safety, and reduces scoring prices whereas enabling lenders to mitigate operational dangers by means of an emphasis on information privateness and information minimization.
New York-based Socure has been a Finovate alum since 2013. The corporate leverages AI and machine studying, together with trusted on-line and offline information intelligence, to confirm identities in actual time. A number one digital identification verification and belief platform, Socure has greater than 2,000 prospects in monetary providers, e-commerce, healthcare, and different industries, and contains 4 of the highest 5 banks, seven of the highest 10 card issuers, and greater than 250 of the most important fintechs amongst its purchasers.
Photograph by Adi Goldstein on Unsplash
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