Identification verification, compliance, and danger 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, id, 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 id, compliance, and danger decisioning platform Socure has acquired real-time Purchase Now Pay Later (BNPL) shopper credit score database, Qlarifi. The mix will create a unified id, anti-fraud BNPL credit score infrastructure serving to customers 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 techniques that had been by no means designed to assist their progressive lending merchandise,” Socure Founder and CEO Johnny Ayers mentioned. “On the identical time, customers deserve a protected path to construct credit score, lenders want real-time visibility to scale back fraud and danger, 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 will 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 progress 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 techniques and infrastructure, nevertheless. These techniques weren’t constructed for the sort 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 will expose retailers to vital losses and even elevated fraud charges. Moreover, in contrast to different credit score schemes, BNPL additionally tends to go away customers and not using a path to construct credit score.
In response, Qlarifi’s platform permits BNPL suppliers to securely lengthen financing to certified prospects, whereas figuring out high-risk conduct reminiscent of mortgage stacking and monetary crime reminiscent of first-party fraud. Already piloted successfully with its companions in Europe, Qlarifi is designed particularly to assist lenders defend 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 to validate id throughout BNPL suppliers, allow skinny file prospects (these with restricted credit score historical past) to entry credit score responsibly, and scale back fraud-related fee prices for retailers.
“We constructed Qlarifi to unravel a really actual ache level: the shortage of infrastructure to guard customers 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 super industrial scale, stability sheet, and world-class analytics behind us to construct the infrastructure that may allow accountable lending at scale and display to regulators that the trade can defend customers whereas increasing entry to credit score.”
Headquartered in London and based in 2023, Qlarifi affords a BNPL shopper credit score database, offering lenders with BNPL transaction historical past knowledge to allow them to make extra knowledgeable underwriting choices. The answer helps customers entry the correct credit score merchandise for his or her wants, supplies enhanced fraud safety, and reduces scoring prices whereas enabling lenders to mitigate operational dangers by way 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 id 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 purchasers.
Photograph by Adi Goldstein on Unsplash
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