Veridu, a London-based startup offering identity solutions for the payments industry, is today announcing that it has secured investment from Worldpay Group plc. The fresh capital will support Veridu in further developing and rolling out their solutions globally.
Veridu was founded in 2012 with the goal to end the uncertainty of online merchants over whether to trust certain high risk transactions. The startup aims to provide the most accurate, reliable and trustworthy tool to quickly and efficiently verify the identity of users in order to eliminate fraud and unwanted user behavior.
Rasmus Groth, CEO and founder of Veridu stated: “Veridu was established to bring trust to the internet and eliminate the identity verification challenge by harnessing the widespread adoption of social media, and using this wealth of information on an individual as a form of identity. Now that Worldpay has invested in us, we’ll work closely with them to further strengthen our product and make sure that it meets all the needs that payments processors and their customers have in today’s economy,”
By using advanced algorithms and people’s social media profiles, Veridu is able to score how trustworthy the identity of a person is. With the user’s consent, the information is then shared with the company who has asked to establish trust in their identity, such as a sharing economy platform or online store. This innovative method of bringing trust to online transactions has made several investors and venture capitalists invest in Veridu, and now Worldpay has joined this investor group.
As consumer bases become more international, many online businesses struggle with false positives — wrongly declining legitimate transactions – as the methods they use to verify identity in their home markets may not work in all countries. The ability to comprehensively verify the identities of potential customers globally, therefore, has a direct impact on their revenues.
Ron Kalifa, Vice Chairman, Worldpay said, “By verifying shoppers via their digital identity, Veridu’s technology delivers an additional level of security for higher risk transactions. By partnering with this innovative startup, Worldpay will be able to offer our customers yet another way to protect their business from online fraud.”
The recent investment from Worldpay is undisclosed. It’s no more than half a year ago that Veridu raised £800,000 and according to Veridu founder Rasmus Groth, he expects a valuation of £20-25 million in 2017.