Plaid positioned for more IDV transactions as eBay acquires car sales platform

eBay is expanding its car sales division with the acquisition of an automotive transaction platform, in a move that cements Plaid’s place in the biometric identity verification portion of the market.

eBay has reached a deal to acquire end-to-end online automobile sales platform Caramel, but will continue to use Plaid for identity verification, as Plaid provides IDV for both companies, in eBay’s case through fintech Adyen, which enables payments from the customer’s bank.

Caramel’s identity verification process consists of an ID document scan and a selfie biometric comparison, as stated on its website. The capability is provided by Plaid, Caramel says in its privacy policy.

“Caramel’s platform brings it all into one simple, seamless process: title and identity verification, insurance, financing – even shipping the car to the buyer after purchase,” says Chris Prill, GM of eBay Motors. “With Caramel and eBay combining forces, both buyers and sellers will be able to complete vehicle transactions on eBay with greater peace-of-mind, and Caramel can further establish itself across a myriad of platforms.”

Plaid added identity verification to its portfolio when it acquired Cognito for “around $250 million” amid a flurry of market consolidation in January of 2022.

Since then, Plaid has doubled down on identity verification, enabling users previously verified to sign up for financial services with new providers without repeating the IDV process.

eBay’s acquisition of Caramel is expected to be finalized in the first quarter of 2025, subject to the customary conditions.

Article Topics

biometrics  |  eBay  |  ecommerce  |  financial services  |  identity verification  |  Plaid  |  secure transactions  |  selfie biometrics