Socure reports third straight record quarter for biometrics and IDV revenues
Socure is reporting 126 percent growth in recurring revenue on a year-over-year basis in the second quarter of its fiscal 2021, the third consecutive quarter that sales of the company’s biometric KYC and AML checks and digital identity technologies have reached record highs.
Bookings for Socure’s digital identity verification and biometric fraud prevention solutions during the first half of the year surged by 220 percent compared to 2020, and the company surpassed the 500 enterprise customer milestone.
The Socure ID+ biometric platform is now used by 4 of the 5 largest banks and 7 of the 10 largest credit card issuers, as well as leading Buy Now, Pay Later (BNPL) providers, crypto exchanges, and online gaming operators. The wave of recent interest also includes fintech, telco and healthcare companies, and state and federal governments, all seeking to automate customer approvals while keeping fraud rates and customer friction low.
The growth is also supported by existing customers, with Socure claiming a net retention rate of 177 percent on near-zero attrition and enterprise deployments to new divisions as enterprises turn to the platform for KYC, document authentication, AML and fraud prevention.
The company cites emarketer research estimating American consumers will spend $933 billion on ecommerce this year, and AiteNovarica research that indicates losses from identity theft grew by over $200 billion from 2019 to 2020 in explaining driving forces behind its revenue growth.
Socure also recently upgraded the biometrics capabilities of its DocV solution, originally launched under a year ago, with liveness detection confirmed compliant with NIST presentation attack detection (PAD) level 2 standards, according to the announcement.
“We’re on the fastest growth trajectory Socure has ever seen and attribute that to our differentiation in the market by being able to more accurately and instantly verify the hardest-to-identify segments of the population, specifically Gen Z, millennials, thin-file, credit invisible, and new-to-country at incredible scale,” says Johnny Ayers, founder and CEO of Socure. “Everyday, hundreds of the largest and most influential companies online are using Socure’s technology to achieve the goal of creating equitable access for all individuals buying goods and services on the Internet, while protecting themselves and consumers against fraud. I’m extremely grateful to get to partner with such a world-class team that’s working to execute on such a critical societal need.”
Recent highlights for Socure include the appointments of Debra Geister as VP of Product Commercialization, Compliance & Regulatory, and Mike Cook as VP of Commercialization, Fraud Solutions, as the company’s team reached 296 employees.
Socure says its technology can provide instant identity verification for 98 percent of people across all ages and demographics, and capture 90 percent of synthetic ID fraud among the riskiest 3 percent of customers, including for clients without reliable synthetic ID fraud labels.
The company also recently followed up a $100 million funding round by securing a strategic investment from Capital One Ventures.