The need for global ID verification solutions in the retail and eCommerce industries has become increasingly evident over the past few years. As more large retailers and eCommerce sites come under threat from cyber-attacks and are infiltrated by fraudsters, the protection of consumer data has reached the same priority as a bank vault or even human life, because in essence, you are protecting someone’s way of life.
Global ID verification solutions enable customers to shop across international borders with the same level of trust as they would in their local market. The key is to automate ID verification while maintaining global reach and robust digital identity management.
The Rise of ID Verification Solutions in the Retail and eCommerce Industry
As retail eCommerce sales reach almost 5,000 billion USD and more people buy online, ID verification in the retail and eCommerce industry has become necessary as a digital payment option. eCommerce has made it easier for customers to research products, services, the company, and purchases, all without leaving their homes. But this increase in convenience has both a negative and positive tradeoff.
As sales and foot traffic increased beyond pre-pandemic levels, so did attacks on the retail and eCommerce industry. Luckily, regulators saw the need for strengthening the protection of consumer data and introduced identity verification solutions. However, this didn’t translate to immediate protection for the retail and eCommerce industry.
But as more regulations were rolled out for anti-money laundering (AML) and the combatting of terrorism financing (CTF), ID verification was thrown into the spotlight as more businesses realized the benefits of digital identity security and management. Identity verification became the standard when purchasing and doing business. As eCommerce, mobile commerce, and social commerce sales matched and surpassed that of physical stores, it was now clear that ID verification solutions needed a more global approach.
That is why global ID verification solutions are a key component in the modern digital economy. By providing a means of verifying that eCommerce and retail customers are who they say they are, they ensure that the right people get access to the right products and services. This is especially important in today’s digital age, where online identity security is a top priority for 57% of retail consumers.
The Failures of ID Verification Solutions in the Retail and eCommerce Industry
The problems with ID verification in the retail and eCommerce industry for the last couple of years include a high number of failed attempts at online customer onboarding, a lack of customer validation, and a general lack of digital identity security throughout the entire process.
The goal of ID verification was to prevent bad actors from entering your system. ID verification solutions were supposed to fulfill the requirements for the Customer Identification Program (CIP) and subsequently AML compliance. Sadly, many retailers didn’t get the latter half of the memo and only focused on ID verification for customer purchases.
The lack of robust ID verification solutions coupled with the existing digital divide made it difficult for underdeveloped countries to conduct positive ID verification. On the contrary, it has led to the following issues for the retail and eCommerce industry.
- Increased supply chain and shipping issues
- Expensive omnichannel transition failures
- Complex onboarding solutions
- Higher cart abandonment rates
- Increased risk of cyberattacks
- Loads of unverified, unregistered digital enterprises
- Improper digital identity security and management
With less than 62% of the world’s fully digital, global ID verification in the retail and eCommerce industry was already in dire straits. Add in a global pandemic that forced hasty digital transitions and it was already a recipe for disaster. Many retail and eCommerce stores simply couldn’t make omnichannel marketing work, protect consumer data or understand how simple global ID verification could be.
Why are Global ID Verification Solutions so Important in the Retail and eCommerce Industry?
As the online retail landscape continues to evolve and expand, the importance of global ID verification solutions has become increasingly clear. By providing a simple and secure way to verify a user’s identity, global ID verification solutions allow retailers to build better relationships and secure vital customer and business data.
There are several reasons why global ID verification is important.
- Reduced shipping errors
- Increase the ease of doing business online
- Reduced instances of chargeback fraud and Frankenstein identity theft
- Assured AML compliance
- Improved digital identity management
- Boost in sales, both online and off
- Safer hiring practices for remote staff and outsourced services
- Overall better management of both retail and eCommerce stores
With identity verification technology paving the way for improved customer and business relations, better and safer business practices are slowly becoming the norm in the digital space even with unregistered digital entities. This improvement has even encouraged fully direct-to-customer (D2C) online stores to venture into experimental pop-up shops to test the retail experience. Global ID verification solutions give your retail business or eCommerce store at least a fighting chance and a competitive edge in breeching that 40% digital divide.
3 Identity Verification Solutions You Need from Your ID Verifications Solutions Provider
Validating ID is no longer valid as a manual process where identity is verified using human vision and physical tokens. Automated ID verification and digital identity management should be the standard when choosing ID verification solutions. Any identity verification solutions provider that cannot provide biometric authentication methods or ongoing transaction monitoring should not be considered if you want to achieve AML compliance.
Mobile ID verification
With mobile commerce on the rise and increased interest in (Browse/Buy Online Pay/Pickup in Store) BOPIS options, mobile ID verification has become more of a need than an option. Mobile ID verification helps retailers achieve unity between physical retail stores and eCommerce sites. And as smartphone developers add more biometric safety features to their devices, these become the ideal conduit for biometric authentication and mobile ID verification solutions.
The most advanced mobile ID verification solutions combine cutting-edge technologies such as facial recognition and biometric scanning with advanced algorithms to ensure the highest level of accuracy and security. They are used to verify the identities of customers in-store, online, and on the phone, and to ensure that the data customers provide is accurate and secure.
Real-time Identity Verification
The retail and e-commerce industries rely heavily on the real-time identity verification of customers, both in-person and online. 85% of customers want a personalized, safe, and transparent digital customer experience, while 50% of Gen Z consumers still prefer to shop offline. The gradually rising interconnection between eCommerce and retail means real-time identity verification needs to be performed through a combination of live video chats, signature analysis, and other digital and biometric verification means.
For retailers and e-commerce stores, the need for reliable and secure real-time ID verification solutions is vital to their success. And to achieve real-time identity verification, automation plays a huge role in your customer identification program. Automated ID verification solutions that provide real-time access to updated global watchlists are invaluable to maintain digital security and preventing fraudulent attacks.
Online Identity Verification
Social commerce has increased by 49% as more small business owners use their social media pages as their digital storefronts. Online identity verification provides a simple and cost-effective way for online retailers and eCommerce businesses to protect their customers and their brand reputation. By offering a range of online identity verification solutions, such as phone and text verification, email, IP address. and social media, businesses can ensure that they are providing their customers with the security and reassurance they need.
Online identity verification works not just for social media but for the cryptocurrency industry, gaming, and other age-restricted platforms.
IDMERIT: The Industry-Leading Global ID Verification Solutions Provider for the Retail and eCommerce Industry
Global ID verification is the backbone of modern eCommerce and the retail industry. IDMERIT’s highly scalable global identity verification platform uses biometrics and machine learning to assess a customer’s identity and match it with a reliable global database. With a wide range of additional services, such as document verification and sanction list screening, we help businesses build a more comprehensive customer profile and achieve AML compliance.
With the help of FrescoData, we can solve the omnichannel transition issue that plagues the retail industry and help your business strengthen its digital identity management. Trust IDMERIT for online identity verification solutions that work in real-time and can be incorporated on smart devices and social media. Together we can ensure your empire stays safe by trapping fraudsters at the gates and keeping cyber criminals in the stocks.
Retail and eCommerce are among the most heavily reliant industries on personal data, with organizations and individuals alike entrusting retailers with their personal information. As a result, retailers must employ robust ID verification solutions to protect consumer data and safeguard the brands they work with.
Talk to one of our identity verification experts today about global ID verification solutions for retail or e-commerce.
