Identification 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.
World 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 supply financing to extra certified prospects, whereas offering transparency and elevated shopper safety that regulators more and more demand.
“BNPL has outgrown the legacy programs that have been by no means designed to assist their progressive lending merchandise,” Socure Founder and CEO Johnny Ayers stated. “On the identical time, shoppers deserve a secure 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 Identification Graph, we are able to ship the unified infrastructure that every one market contributors have been asking for.”
Purchase Now Pay Later is a rising part of the e-commerce ecosystem, with almost 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 typical credit score reporting programs and infrastructure, nonetheless. These programs weren’t constructed for the form of excessive frequency, small greenback quantity lending selections made in milliseconds that characterizes BNPL. Furthermore, lenders have little visibility into the creditworthiness of debtors, particularly in the case of cross supplier visibility. This could expose retailers to vital losses and even elevated fraud charges. Moreover, not like different credit score schemes, BNPL additionally tends to go away shoppers with no path to construct credit score.
In response, Qlarifi’s platform permits BNPL suppliers to securely prolong financing to certified prospects, whereas figuring out high-risk habits akin to mortgage stacking and monetary crime akin to first-party fraud. Already piloted successfully with its companions in Europe, Qlarifi is designed particularly to assist lenders shield their prospects from overextension and scale back the chance for BNPL suppliers. Built-in with Socure’s Identification Graph intelligence and RiskOS decisioning engine, lenders will be capable of validate identification throughout BNPL suppliers, allow skinny file prospects (these with restricted credit score historical past) to entry credit score responsibly, and scale back fraud-related cost 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 stated. “By becoming a member of forces with Socure, we now have their great industrial scale, steadiness sheet, and world-class analytics behind us to construct the infrastructure that may allow accountable lending at scale and display to regulators that the business can shield 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 selections. The answer helps shoppers entry the appropriate credit score merchandise for his or her wants, gives 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 consists of 4 of the highest 5 banks, seven of the highest 10 card issuers, and greater than 250 of the most important fintechs amongst its shoppers.
Picture by Adi Goldstein on Unsplash
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