Identification verification, compliance, and threat decisioning platform Socure has acquired Purchase Now Pay Later (BNPL) client 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 customers 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) client credit score database, Qlarifi. The mixture will create a unified identification, anti-fraud BNPL credit score infrastructure serving to customers construct credit score responsibly, enabling lenders to confidently supply financing to extra certified clients, whereas offering transparency and elevated client safety that regulators more and more demand.
“BNPL has outgrown the legacy techniques that have been by no means designed to help their revolutionary lending merchandise,” Socure Founder and CEO Johnny Ayers stated. “On the similar time, customers deserve a secure path to construct credit score, lenders want real-time visibility to cut back fraud and threat, and regulators require transparency and reporting. Qlarifi constructed the primary real-time BNPL client 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 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 prime $700 billion globally by 2028. The rise of BNPL presents a problem to each typical credit score reporting techniques and infrastructure, nonetheless. These techniques weren’t constructed for the sort 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 on the subject of cross supplier visibility. This will expose retailers to vital losses and even elevated fraud charges. Moreover, in contrast to different credit score schemes, BNPL additionally tends to depart customers with out a path to construct credit score.
In response, Qlarifi’s platform allows BNPL suppliers to securely prolong financing to certified clients, whereas figuring out high-risk conduct corresponding to mortgage stacking and monetary crime corresponding to first-party fraud. Already piloted successfully with its companions in Europe, Qlarifi is designed particularly to assist lenders defend their clients from overextension and cut back the chance for BNPL suppliers. Built-in with Socure’s Identification Graph intelligence and RiskOS decisioning engine, lenders will have the ability to validate identification throughout BNPL suppliers, allow skinny file clients (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 dearth of infrastructure to guard customers 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 super business scale, stability sheet, and world-class analytics behind us to construct the infrastructure that can allow accountable lending at scale and exhibit to regulators that the trade can defend customers whereas increasing entry to credit score.”
Headquartered in London and based in 2023, Qlarifi provides a BNPL client credit score database, offering lenders with BNPL transaction historical past knowledge to allow them to make extra knowledgeable underwriting selections. The answer helps customers entry the suitable 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 knowledge privateness and knowledge 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 knowledge intelligence, to confirm identities in actual time. A number one digital identification verification and belief platform, Socure has greater than 2,000 clients 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 biggest fintechs amongst its shoppers.
Photograph by Adi Goldstein on Unsplash
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