Recent independent research from Trulioo found 87% of consumers have become more careful with their money during the past three years, and 74% acknowledged they are anxious about their finances.
Consumers are increasingly drawn to online marketplaces for their speed and convenience, but those same customers have grown more cautious when transacting online.
The report, “Wary customers seek reassurance from online marketplaces,” highlights how consumers want online brands to do more to protect them from fraud and identity threats. Online marketplaces, in turn, are refining their identity verification strategies to improve security, build trust and create reassuring experiences to meet customer expectations.
Expanding marketplace opportunities
The research found many online marketplaces anticipate growth, with 54% of respondents saying they feel positive about their business prospects in the next two to three years. Almost half of online marketplace leaders expect their customer base to expand into new markets in the next three years, compared with only 10% who predict a contraction.
Across the board, online marketplaces want to embed greater agility and resilience into identity verification so they can quickly respond to new markets and changing conditions. There are multiple reasons for the emphasis on agility, from a need to do more to protect customers to competitive challenges.
Agile and resilient identity verification can help businesses ramp up operations in new markets quickly and compliantly. Among marketplace respondents, 74% pointed to the complexity of geographical expansion as a challenge that requires greater identity verification agility and resilience, while 90% said increasing user volumes are intensifying the need.
Identity verification can provide a competitive advantage
Online marketplace leaders and consumers see the importance of identity verification. Among marketplace respondents,87% said it can create some certainty during uncertain times, and 90% said it needs to be continuous throughout the customer journey, rather than a single onboarding step.
That aligns with the 79% of consumers who said they’re comfortable with identity verification taking longer or involving more steps. But customers also expect speed and convenience.
That has left online marketplace leaders searching for a balance, with 89% saying there is a sweet spot where identity verification can be secure and convenient.
Efficient, agile and secure identity verification, combined with the technology to automate it throughout the customer journey, can help marketplaces achieve that balance, build trust and enhance relationships with customers.
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