Identity checking came into play after the e-commerce companies suffered losses of crores of rupees from false mailing addresses and turned away goods. Apparently this is a lesson learned by banks after getting singed for decades. “We identify the name and address through mobile number and credit card information,” said Chirag Bakshi, chief executive of Zumigo, a startup backed by Wells Fargo and Intel Capital. “This is enabling security and identity.” In online transactions, the liability rest with the merchants. Zumigo is in talks with merchants and bureaus in India to help them identify a customer and check fraud.
In the United States, it has tied up with Equifax and other credit bureaus. Data is not stored with any mobile wallet or merchant. “We are using identity to facilitate fast payment for sale. You can use it to make payment at any browser site,” said Bakshi. To validate an account, it may ask simple questions such as pin code or CVV.
The tie-up with telecom companies will help identify whether the person is at the location before delivering cash on delivery. If cash on delivery is refused, it is a liability for online marketplaces. Though Zumigo may get information from telecom companies and help reduce delivery cost for online marketplaces, it may find it difficult to tie up with credit bureaus in India.
“We are regulated under Credit Information Companies Regulation Act (CIRCA), which does not allow us to share information with anybody other than specified user,” said Mohan Jayaraman, managing director of Experian Credit Information Company of India.
CIRCA clearly defines a specified user who can register with a credit bureau as member entity. Other than credit institutions, insurance companies, telephone services providers, credit rating agencies registered with Securities and Exchange Board of India (Sebi), a stockbroker or sub-broker registered with Sebi, a trading member of recognised commodity exchange, Sebi and Insurance Regulatory and Development Authority are regarded as specified users.
Source: Economic Times