Onfido, an identity verification platform, today announced a partnership with BitPay to accept payment in Bitcoin. BitPay is also using Onfido’s technology to meet KYC requirements and onboard new users.
Onfido’s machine learning technology powers identity verification for more than 1,500 customers worldwide. With just a photo of an identity document and a smartphone camera, users can confirm their identity and gain access to a host of online services.
BitPay processes more than $1 billion annually from merchants and B2B customers. It verifies the funds and accepts the bitcoin on behalf of the organization, with businesses receiving settlement in fiat currency within one to three business days.
Partnering with BitPay helps Onfido expand into international markets where credit card payments are impractical. While more than two billion adults worldwide are un- or underbanked, half of those own a smartphone. BitPay enables transactions from any computer or mobile device, meaning Onfido can deliver identity verification services to a large number of otherwise underserved global users.
Bitcoin payments also help increase payment transparency and reduce the fraud risks associated with credit cards, the company said. Cryptocurrency provides increased transactional transparency and security as every transaction is verified, recorded and stored on the blockchain. The transaction itself contains no sensitive information, and as a push transaction, similar to taking cash out of a wallet, the user sends the exact amount of bitcoin needed to pay the bill. This eliminates traditional credit card fraud and identity theft risks associated with credit cards. As a result, chargebacks, which cost merchants almost $19 billion in 2017 are addressed.
In addition to Onfido being able to accept payment in bitcoin, Onfido is also the KYC provider for BitPay. For BitPay, using Onfido’s identity verification technology helps them onboard more users, more quickly. Onfido is used by more than 30 crypto exchanges and wallets.
“At Onfido, it’s our mission to build an open world where identity is the key to access,” Onfido co-founder and CEO Husayn Kassai said. “Partnering with Bitpay was the obvious choice for both our businesses. BitPay enables us to securely service more people in a way that is cost-effective and quicker than a bank wire, while we can deliver them the most trusted identity verification service in the crypto space.”
“We’re delighted to be working with Onfido to enable them to accept payment in Bitcoin,” BitPay president and CEO Stephen Pair said. “We selected Onfido as our internal identity verification platform as it had the most robust functionality and was easiest to use. Allowing crypto companies to pay in Bitcoin shows Onfido’s commitment to the crypto space, and we’re excited to be working together to make crypto more secure, for more people.”
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