ID verification startup IDnow has received a $40 million growth equity investment from private equity group Corsair Capital, according to reports. Corsair focuses on industries related to financial and business services.
The segment of ID verification is growing, and other startups in the field, like Onfido and Jumio, have raised large amounts of capital in the last few years. The process is especially important in the gig economy, where workers mainly use their phones to complete tasks.
IDnow allows customers to verify their identity online with a phone, tablet or webcam via a process that uses image recognition.
“IDnow is well-positioned to capture greater market share in Europe and beyond, as we continue to lead the way in the growing digital identity verification space,” said IDnow CEO Andreas Bodczek.
Once the funding is completed, two Corsair executives will join the IDnow board of directors: Raja Hadji-Touma, partner at Corsair, and Edward Wertheim, principal at the private equity group.
“Our investment is the result of a thematic focus on businesses that address new requirements arising from the digitalization of many financial transactions and processes, such as security,” said Hadji-Touma.
PYMNTS recently spoke with Alain Meier, CEO of Cognito, an ID verification and online fraud prevention service, about the future of the field. The evolving capabilities of electronic ID verification do not necessarily have to involve new tools such as biometrics, at least according to Meier. The boring, mundane phone number can do the trick.
Speed is an important metric, though. That means quick — but reliable — electronic ID verification services will command more of the spotlight, as digitally minded businesses seek to please those consumers, and stay a step ahead of the PR and regulatory response to data privacy and fraud.
“ID verification solutions are becoming more significant and sophisticated than they used to be,” Meier said.
IDnow is a good example of that.