in ,

What Online Identity Verification Means To Marketplaces

Photo by Dom J from Pexels

Probably every person at least once in his life purchased in the marketplace. And after about one there is a negative online shopping experience. The real test for marketplaces is the trust of their participants as extremely popular marketplaces are ideal places for scammers.

The most recent statistics show that buyers’ sensitive data is stolen and used for crimes particularly money laundering and bank account fraud. That is why governments of most countries are introducing laws to regulate marketplace activity, including KYC measures.

Therefore, online identity verification services are called to guard the security of the involved parties. Whilst customers seek easy and safe communication, the respective solutions should guarantee superb experience worldwide and non-compromised reliability. Consumer data protection is essential for trusted relationships and seamless transactions.


The first contact with the marketplace, whether for the seller or the buyer, begins with onboarding. Ideally, the entire onboarding process should be as simple and understandable as possible for the participants and not cause any difficulties. At the same time, a balance needs to be struck between legal compliance and onboarding speed and simplicity.

Online Identity checks usually include ID, selfie, and address document check (it may also be necessary for taxation purposes) that helps nullify the risks of using a stolen identity, which is the most common fraud these days.

Companies/businesses should also provide their corporate documents, and describe their business activities, and licenses, if applicable.


Countries with substantial online marketplaces such as the USA, Australia, the UK, and Germany introduced strict customer and buyer onboarding regulations: General Product Safety Directive, EU; The Computer Fraud and Abuse Act, USA; Electronic Transactions Act and Australian Consumer Law, Australia; Consumer laws and Regulations, UK.

Building Trust and Gain Loyalty


Identity verification is aimed at increasing consumer confidence and trust both in the marketplace and with “verified” sellers.

Buyers must be sure that they are communicating with real people and that their money will not go into the pocket of scammers, and the goods will be sent to them in return for the money spent. Marketplaces thus get loyal customers who will return for purchases from them repeatedly.


Identity verification plays into the hands of the marketplaces themselves and the companies/sellers who register there. One of the sides of building a brand is the acquisition of trust from customers. At the first meeting with the seller, only the indication that the company/seller has passed the identification disposes the buyer and inclines him to buy.

In some countries, it is mandatory to submit a security deposit before starting to sell various products on the marketplace. Different limits on deal amounts may apply depending on B2B, B2C, and C2C activities. Identity checks secure sellers/buyers from significant losses if fraud still occurs. Moreover, it is highly recommended to strictly scrutinize customers and buyers and report any violation to competent authorities by the marketplaces.

Ordering KYC services from highly experienced professionals is one of the best investments in marketplace security. It is much more effective than maintaining your staff; it helps avoid fines from regulatory bodies and may save you from marketplace closure.

Just to help marketplaces and their users, the work of KYCAID is directed. Our company helps fight fraudsters through identity verification, company verification, and transaction verification whilst helping to remain compliant with international and local rules. With our help, marketplaces and sellers of goods tin simplify business processes, gain trust and improve communication with buyers.

We have developed a turnkey solution that will help protect the marketplace and its users.

ID Document verification

Our system recognizes and validates all the possible data fields and then compares the MRZ codes with the visual part of the document. Our technology can detect forged documents or ones of doubtful quality and instantly report those red flags with verification denial reasons.

Biometric verification

Face verification is one of the basic checks that we perform.

Alongside the static selfie verification, KYCAID offers a Liveness check. It’s a more advanced technology that uses biometric face print add, motion detection, and face matching algorithms to compare the captured face features with the photo on the provided document.

Proof of Address Check

Address verification is an additional layer of protection for your business and verification of who you will work with. It is enough to upload any document issued by the state or a bank, where the address will be indicated.

Payment verification

An important check can be the verification of transactions. Indeed, along with identity theft, scammers also most often use other people’s card details for online purchases. KYCAID can help to verify transactions and trace payments made via bank cards, e-wallets, and even crypto-wallets.

The identity verification from the KYCAID uses the most advanced AI technologies, which not only automates and speeds up the process to several minutes but also makes it more reliable.

by Alexandra Pugach, Business Development Manager of KYCAID

Written by Data Magazine

Photo by Burak The Weekender from Pexels

Using Data To Your Advantage When Investing

Photo by Glenn Carstens-Peters on Unsplash

Affordable Ways To Keep Your Digital Data Secure