Amid the ever-evolving landscape of fintech, companies are diversifying their product offerings to seek new revenue streams. European payments giant Checkout.com, valued at $9.35 billion, is no exception. While renowned for payment processing, the company has ventured into Identity Verification (IDV) this year, recognizing the growing demand for digital gatekeeping solutions in the face of online fraud and identity theft threats.
Checkout.com's IDV product leverages machine learning and AI to identify customers in under 120 seconds, distinguishing itself with its speed and fraud detection rates. The technology has undergone extensive training on datasets featuring billions of facial recognition templates and identity documents. During beta testing, it successfully verified over ten million identities, including detecting over one million fraudulent attempts.
The IDV process is user-friendly, with customers using the video mode on their mobile phones to show an identity document and their face. The AI guides users through the process, providing feedback on document authenticity and facial positioning to ensure accurate identification and combat fraud. Users are also informed if the scanned document is invalid.
The origins of Checkout.com's IDV product can be traced to the acquisition of French startup Ubble in the previous year. Ubble was founded in 2018 with a focus on AI-driven, live video streaming for identity verification, aiming to provide reliability on par with face-to-face verification.
Checkout.com's move into the IDV market not only adds a new revenue stream but also strengthens its relationships with existing customers. By offering IDV, the company ensures compliance with evolving regulations and anticipates expanding its payment services to IDV clients. Current flagship clients of Checkout.com include Uber Eats and Docusign, while Ubble brought French government clients and leading French banks to the table.
Additionally, Checkout.com has plans to launch an IDV product in the United States, catering to varying regulatory requirements. In Europe, some level of human intervention is typically required, whereas in the US, fully automated IDV solutions are acceptable.
This strategic expansion into IDV highlights Checkout.com's commitment to delivering comprehensive and secure services to its customers while tapping into new market opportunities.
