iDenfy, a Lithuania-based RegTech company that specializes in identity verification and fraud detection services, announced a new partnership with PAYSTRAX, a prominent Fintech company, which provides merchants with a wide range of solutions for card payment transaction needs. iDenfy’s identity verification solution will help PAYSTRAX onboard customers faster while adding an extra layer of security to its fraud prevention program. 

As the Fintech industry expands, a greater need for scrutiny and compliance measures arises. Consequently, according to iDenfy, inadequate risk management leads to a negative effect on consumer protection. Many non-compliance cases in the past have shown that including high-risk and illegitimate customers during the onboarding process can result in hefty fines and damage to any company's reputation. 

As a way to prevent misuse by criminals, PAYSTRAX agrees the first step is implementing a KYC process that will help organizations understand and manage potential fraud risks during the onboarding process better. To prevent misuse by criminals, PAYSTRAX recognizes that the initial and crucial step is to implement a Know Your Customer (KYC) process. To gain a comprehensive understanding of their customers and effectively manage potential fraud risks during the onboarding phase, PAYSTRAX chose iDenfy as its identity verification service provider.

Currently, PAYSTRAX has been building a customer portfolio that consists of both e-commerce as well as point-of-sale (POS) terminal merchants. The company’s customers are situated in several countries within the EEA and UK, are a mixture of all risk levels, and operate in different industries. PAYSTRAX is best known for providing Visa and Mastercard acquiring services for POS terminals, online, mobile, and other electronic payment systems, creating customized solutions and add-ons tailored to the specific needs of users. 

Before partnering with iDenfy, it was important for PAYSTRAX to build a custom-tailored approach to KYC compliance. According to the payment service provider, the goal was to remove all possibilities of reputational damage and find a best-in-class ID verification solution that would fit the needs of its growing customer base. PAYSTRAX prioritized three key considerations: the partner's ability to detect fraud, seamless user experience, and customer support accurately. After evaluating these criteria, iDenfy was the best fit for PAYSTRAX. 

iDenfy leverages the combined strength of artificial intelligence and human supervision to achieve a remarkable identity verification success rate of up to 99.99%. In addition, the KYC platform is seamlessly integrated with National Government Registries, enabling the re-verification of data extracted from ID documents against government databases spanning over 70 countries. This integration adds an extra layer of security and ensures complete peace of mind for PAYSTRAX. 

By integrating the new identity verification solution from iDenfy, PAYSTRAX customers can complete the whole verification process in less than two minutes. iDenfy’s solution is backed by advanced biometric technology and face recognition algorithms, which prevent the use of fake images, 3D masks, or other deceptive renderings. Consequently, this partnership will help PAYSTRAX ensure that only legitimate clients can access its payment services.

It’s worth mentioning that PAYXSTRAX has made significant investments in financial technology and automation to enhance its payment systems' efficiency and competitive advantage. This includes data utilization, business intelligence, governance infrastructure, risk management, Anti-Money Laundering (AML) compliance, and data security. According to company officials, the partnership with iDenfy helped resolve security and fraud concerns, attained regulatory compliance, enhanced the user experience, as well as ensured scalability and reliability. 

“The collaboration with iDenfy addressed immediate challenges and positioned us for sustainable growth while keeping the highest levels of security and trust. We aim to move away from traditional KYC and utilize a smarter approach to verifying customer identities,” — said Jóhannes Ingi Kolbeinsson, the CEO and Co-Founder of PAYSTRAX.

“We’re happy to empower our new partners at PAYSTRAX to accurately verify identities, even at a larger scale, and provide financial assistance to deserving individuals while effectively preventing fraudulent activities,” — added Domantas Ciulde, the CEO of iDenfy.