March 15, 2023

Unlock Business Value with Modern Identity Verification: A Guide for Payment Providers

Discover how payment providers can reduce costs, acquire more customers and grow revenue by optimising their onboarding with a modern identity solution.

# Insights

In today's digital age, payment providers are in high demand, yet for many, onboarding new customers can be a complex and expensive process.

Digital onboarding has moved from a ‘nice-to-have’ to an essential requirement for companies wanting to grow and scale a customer base. However, balancing the need for security, compliance, and customer experience is challenging – particularly when you rely on a legacy identity verification solution to meet the expectations of modern consumers. The onboarding experience sets the tone for the customer relationship moving forward and has a lasting impact on revenue, yet many organisations fail to go beyond outdated “check the box” processes.

In this blog, we will explore how payment providers can reduce costs, acquire more customers and grow revenue by optimising their onboarding experience with a modern identity solution.

Sustain Growth with Cost Optimisation

While there will always be external factors that may impact growth, such as rising interest rates or supply chain issues, companies that adopt a proactive and strategic approach to cost optimisation are more likely to remain competitive in the market and sustain through periods of uncertainty. One area where cost optimisation can be achieved is by implementing a modern identity verification solution in the onboarding process.

In the case of onboarding, manual intervention can be costly and time-consuming, requiring a significant amount of resources to complete. A modern identity solution can help reduce costs by automating the verification process, eliminating the need for manual reviews and reducing the associated costs of training and maintaining a team. Advanced technologies such as machine learning, biometrics, and artificial intelligence can be used to verify the identity of customers in real-time, without the need for physical documentation or manual checks, which significantly reduces the time taken to onboard customers. By standardising, simplifying, and streamlining the onboarding process, you can reduce your business costs, minimise the chance of human error and improve the overall efficiency of your onboarding process.

Prioritise User Experience for Customer Acquisition

Around the world, organisations are proactively seeking payment providers that can deliver the highest level of security and protection while placing the user experience at the core.

The modern consumer expects a seamless and efficient experience when signing up for a new service, and any hurdles or delays can lead to frustration and abandonment of the process. In an ideal world, the customer onboarding process would be swift with little to no friction. Unfortunately, this is not always the case, with many organisations relying on complex, inconsistent, manual processes that increase the cost of acquiring new customers.

Payment providers rely on various verification methods to ensure the safety and security of their transactions, including verifying the identity of their customers and confirming the legitimacy of their payment methods. When these verifications fail, they can have a ripple effect on the entire customer acquisition process. Optimising the onboarding process can mitigate the impact of failed verifications, minimise customer drop-off, reduce acquisition costs, and increase the likelihood of attracting and retaining customers. A modern identity solution can offer various tools and services to reduce friction and streamline onboarding. This allows payment providers to confidently verify a customer’s identity without the need for manual document review and shorten the overall time it takes to sign up for a service.

Accelerate Revenue Growth

‘Time-to-revenue’ has become an increasingly key metric for payment providers. The longer onboarding takes, the slower the process of booking revenue. Cost optimisation, customer acquisition and revenue growth do not exist in isolation – they all support each other. Reducing friction and manual intervention in onboarding is a critical factor in driving revenue growth for businesses in the payments industry. By automating the onboarding process and eliminating manual tasks, payment providers can accelerate the time it takes for customers to start transacting, resulting in faster time-to-revenue.

An optimised onboarding experience can also reduce customer churn rates, improve user satisfaction, and boost retention rates, resulting in long-term revenue growth. Additionally, by minimising operational costs associated with manual intervention, businesses can improve profitability and gain a competitive edge in the market. Therefore, it is imperative for business leaders to consider the invaluable role a modern identity verification solution can play in accelerating revenue growth.

Unlock Business Value

A modern identity verification solution is a powerful tool that can help payment providers reduce onboarding costs, improve customer acquisition, and drive revenue growth. By automating the verification process, companies are likely to see improvements in both their bottom line and their long-term competitiveness in the market. As the payments industry continues to evolve, modern identity verification will remain an increasingly important tool for payment providers.

How Data Zoo can help

The Data Zoo ecosystem enables payment providers around the world to build modern customer verification experiences. We help fraud and risk leaders simplify integration, scale their global operations and keep customer data safe. With a single, global integration, you can streamline the deployment of identity verification and save time and cost spent on managing upfront and ongoing challenges with legacy identity providers.

Leverage real-time verification –Data Zoo verifies the identity data entered by a customer against a combination of reliable and independent sources. So whether your customers are opening an account or applying for a service, it’s easy to onboard and verify them quickly.

Minimise user error – Deliver frictionless online interactions with Data Zoo’s unique platform tools and smart rules. You can enhance your customer data and identify any errors with provided identity details to improve match rates and reduce manual interventions.

Automate error handling – Data source sequencing provides control over every verification result, leveraging logic-driven rules that automate source routing and optimally retry verifications against the best next source to reduce latency, improve reliability and maximise conversion rates. As a result, you can reduce your cost per verification, increase pass rates, improve response times and protect your business from data source downtime.

Ready to see the difference?

Get in touch to see what Data Zoo can do for you