February 14, 2018
Identity management and security standards cannot remain stagnant when consumers demand a better UX for the financial products and digital services they use. User experience with authentication can become a breaking point between a successful conversion and missed revenue opportunity for businesses across industries.
Fortunately, the pioneer and undisputed leader in the digital identity authentication space is set to redefine global standards of security and customer experience, enabling businesses across industries to expand revenue opportunities.
Payfone, the world’s leading digital identity authentication network, raised $23 million to expand its UX-enhancing cybersecurity services in the retail, insurance, and healthcare sectors. The financing reinforces Payfone’s position as a new standard of digital identity authentication that enables enterprises to combat fraud while enhancing the customer experience to accelerate revenue.
Our research shows that by 2020, 2/3 of e-commerce sales will be conducted by adults under 40. This next wave of customers will be mobile-first and will expect transactions to be both fast and secure, said Rodger Desai, Founder & CEO of Payfone. The days of using quizzes, questions, and one-time codes to verify identity are numbered. Payfone is ushering in a new world where authentication is instant, passive and continuous using the most advanced cybersecurity. Our mission is to help clients across the financial, retail, insurance, healthcare, and technology industries use authentication to not only thwart fraud but drive revenue.
A positive customer experience doesn’t begin with a verbal identity challenge, said Eric Emmons, Managing Director at MassMutual Ventures. Payfone enables service providers across the financial, retail, insurance, healthcare, and technology sectors to offer a frictionless mobile and online experience to their customers, which substantially improves conversion rates and dramatically reduces the cost of call center operations.
Paytm Canada is our beta test, or our warhead to get an entry into new geography beyond India, said Founder & CEO Vijay Shekhar Sharma.
The company’s choice of Canada, a market with a large Indian-origin population, is a way to build brand visibility through the migrant community, said David True, Partner at PayGility advisers. Paytm Canada customers can use the app to pay bills in India, for example.
They may be trying to play on the diaspora; if you send money to a family member and can also use it to pay Canadian merchants, it becomes a multi-purpose app, True said. The ability to drive customer adoption among the diaspora community may be the key to expansion opportunities into the US and beyond, he added.
Given the complexity of international expansion, using a small market with fewer established players like Canada is a less risky way to learn about how to develop and expand product offerings.
To succeed in new markets, one marketing strategy would be to focus on the consequences of easier payment experiences rather than the payment itself.
Their marketing narrative [in India] doesn’t sell payments — instead they sell the ‘need’ to make payments — to buy gold, pay school fees, utility bills, toll taxes, traffic tickets, and so on. Though these needs will differ depending on the geography and location … at the end, it’s all about completing a particular task than making a payment, said Arnav Gupta, a researcher at Forrester.
India’s e-payments pie estimated to grow over five times to $1 trillion by 2023. But most e-wallet operators aren’t profitable in India yet. Besides, many of those who have been issued licenses by the RBI are yet to begin operations as they are still evaluating the situation, given the stiff competition. The entry of big players like WhatsApp and Google at this juncture could mean the end of the road for smaller, struggling firms.
After all, WhatsApp has over 200 million active monthly users in India, just a little less than Brazil’s entire population. And the platform is now leveraging that massive reach in the world’s third-largest economy.
It isn’t just the number of users, but also in terms of engagement levels, WhatsApp scores way higher than other apps. Therefore, theoretically speaking, it will be easier for it to engage customers who are looking at making peer-to-peer payments. – Vivek Belgavi, Head of Financial Services Technology at PwC India
The ecosystem is rapidly evolving in India and only a few major players are going to survive. The rest will have to either shape up or ship out. – Pavel Naiya, Senior Analyst at Counterpoint Research