Stripe launches AI-based identity verification tool
Financial services giant Stripe has launched a new identity verification tool to help online businesses prevent fraud when accepting payments.
Stripe Identity uses artificial intelligence (AI) and machine learning (ML) technology to securely verify the identities of users from over 30 countries.
With online transactions booming over the pandemic, Stripe hopes the tool will help reduce the risk of fraud and simplify Know Your Customer (KYC) compliance for online businesses.
“Businesses have been asking us for an easy and fast way to verify identities online. Stripe Identity offers them just that,” says Rob Daly, head of engineering for Stripe Identity.
To prove their identity, users take a photo of their government ID and a live selfie, which is then matched with the ID.
Businesses can also request that users key in additional information to be checked against third-party records for additional security.
The information collected is encrypted and sent directly to Stripe and is managed on their own servers.
The company claims the entire verification process for an individual user can be completed in as little as 15 seconds.
“We know from experience how much work it takes to build a rigorous and secure system for global identity verification,” says Delia Pawelke, head of global risk strategy and onboarding policy at Stripe.
“With Stripe Identity, we’re making our advanced compliance infrastructure available to all of our users.”
A number of companies have already adopted the tool, including Discord, Peerspace and Shippo.