IDV: A powerful security tool for your growing BNPL business

The technological priorities of businesses in the buy now pay later (BNPL) sector are evolving as fast as the industry itself. The industry was valued at $141.8bn in 2021 and is expected to balloon at a compound annual growth rate of more than 33% in the years to 2026.

This is a huge opportunity, but potentially also a headache for the people responsible for keeping businesses technologically evolved, secure and easy to access for the growing customer base.

The demands are many and diverse, from developing infrastructure without hiccups, to integrating third-party technologies and ensuring solid stack alignment. It goes without saying that the stakes are high: your systems must be powerful, secure and consumer friendly, and you must achieve all this while factoring in the integral ability to scale as the industry develops.

Embed security and scalability with technology

In simple terms, your business is relying on you, so it’s important to partner with the right providers and acquire the right tools to ensure it will continue to thrive in an increasingly crowded market.

This is especially true if your strategy is to expand into the potentially lucrative sphere of unsecured lending, which opens up a new customer base of often higher-value borrowers but also comes with increased oversight from regulatory bodies.

Either way, you need security systems that are easy to integrate, yet powerful and don’t impede business development. Regulation in the lending market is tightening and it’s a good idea to get ahead of pending rules.

IDV that works with you

Identity verification is a robust method of preventing many types of fraud, while helping you to comply with anti-money laundering rules (which are especially relevant to the unsecured lending sector, if expansion is on the cards).

It works by allowing your business to verify a broad range of government approved documents, ensuring the loan applicant is real and increasingly the likelihood that they are genuinely the person who is making the application.

To prevent sleepless nights, look for an IDV tool that integrates seamlessly into your existing technology stack and offers useful around-the-clock support. It should also fit frictionlessly into the loan application process, reassuring customers but not drowning them in red tape.

With the right IDV, you can help your business stay in line with new rules, keep your organization safe, and focus on the technological needs of growth instead of fire-fighting integrations gone wrong.