September 20, 2013
In the recent years, many new players (such as Recurly, Qwikwire) have emerged targeting specific areas of the payment space. Jumio, a mobile payments and ID-scanning startup seeks to help retailers process credit card transactions quickly and securely using webcams.
Founded in 2010 by CEO Daniel Mattes, Jumio is backed by investors such as Andreessen Horowitz, Facebook Co-Founder, Eduardo Saverin and Citi Ventures. In March 2011, Jumio received $6.5 Mn in Series A funding . They acquired a further $25.5 Mn and $3.35 Mn in Series B funding in 2012 bringing the total to $35.3 Mn in outside funding. Headquartered in Palo Alto, California Jumio operates globally with offices in the Europe, US and Asia.
Jumio® Inc. claims to offer next generation online and mobile credit card payments validation and ID verification products for financial institutions, e commerce retailers, governmental agencies and online marketplaces. It looks like the facebook of payments due to its core concept of verification.
It has two main product lines –
1) Its Netswipe technology lets consumers show their credit card to a webcam to get details instead of typing them in. Jumio can detect what type of material is being scanned, so a photocopy of the credit card will not work. It claims to increase transaction completion rates by 25% and scanning the card takes 5 seconds.
2) Netverify technology turns the customers smartphone or computer into an ID scanning terminal to verify their ID and other credentials, the entire process takes 60 seconds. In 2013, Jumio added Facematch, a feature that allows its customers to match provided photo IDs with the end user’s actual face.
Face Match is offered as part of the Netverify package, which is priced on a recurring monthly fee basis, determined by number of transactions. Customers can choose to activate the option, but won’t need to install a separate SDK (Software Development Kit) to enable the technology in their applications. Netverify works in over 90 countries. Jumio received the award for best innovation in payments solutions at annual ‘eGaming Review’ which is an online gambling industry award ceremony. Their customers include Western Union, Travelocity, Gyft, Wallaby and GoPago among others. The first company to integrate with Netverify Mobile is SideCar.
Card.io is one of the competitors in this field. It offers a payment solution that speeds up the process of inserting credit card numbers on the small screens of mobile devices, like smartphones. More than 160 apps have been integrated with Card.io including Qthru, Venmo, Newegg, EventDay, Spotze, Clinkle, Ambur, TaskRabbit, BeagleApp, WillCal and Flotku among others. Card.io was acquired by PayPal in July 2012.
LTP View: Jumio’s technology might help increase revenue and reduce friction in consumer transactions by enabling them to scan their cards online, do facematch and use mobile checkout. The technology may be an advantage to financial institutions, online marketplaces and e-commerce sites by speeding up the process of customer verification.