Lenders and payment providers are racing to seize the opportunities inherent in BNPL transactions, but new online behaviors are changing the dynamics of payment processing. 

The pandemic-driven migration to digital commerce is providing new ways to reach an audience that was reluctant to conduct business online, but it has also inverted fundamental risk and reward calculations. Fraud attempts are more sophisticated while new consumers are less skilled with technology. 

This shift has made it more important to avoid negative customer experiences that can come from denying valid transactions — especially when those transactions are difficult to distinguish from fraudulent ones. As lenders look to scale up their BNPL solutions and capture a bigger segment of the market, they will need to ensure that their systems are prepared for the challenge.

A Growing Need for Automation

Identify verification has become the foundation of every online transaction at a time when basic precautions are more important than ever. Businesses cannot afford labor-intensive manual checks for routine anti-fraud processes, standard compliance procedures, or normal activity that supports KYB and KYC workflows.

Demyst’s plug-and-play API recipe verifies the name, address, and phone number of an individual to simplify the identity verification process for online transactions. Instead of focusing on a single upstream data source, Demyst maximizes flexibility and efficiency by accessing a catalog of external data providers through a single API. 

Sign up for a free account on the Demyst platform to discover more recipes that can streamline business processes.