February 14, 2018

eCommerce booster online-credit

Digital credit contracts are becoming crucial for online retailers to survive. Such an application requires an online video identification and electronic contract signing for which more and more suppliers rely on the e-signing solution by IDnow. This allows customers to legally conclude the loan agreement online in just a few minutes.

Online trade continues to boom. The forecast by the German Trade Association for 2018 e.g. indicates a growth of 10 %. The e-commerce market is, without doubt, highly competitive. In the end, apart from choice and price, speed and comfort are the decisive purchasing criteria. As such, a digital financing service can ultimately tip the scales. After all, an increasing number of online customers want to finance their purchases by credit. A survey by the German Trade Association reveals that in the case of payment behaviour in online trade the proportion of financing, or payment by instalments has, in the meantime, reached 4.5%. The demand during the Christmas shopping season is particularly high. Anyone who doesn't want to lose their customers to the competition must reach to them with digital financing offers.

Online customers expect a quick and comfortable service with regard to credit. In the digital age, there is hardly anyone willing to print out the corresponding documents, sign them and send them, let alone to go personally to the post office for the identification. For additional services, customers also expect an up-to-date offer that they can access at any time via mobile. A digital solution for granting credit requires amongst others a legally binding identification and contract signing by the customer. In light of the complex regulatory and technical requirements for a corresponding application, an increasing number of online retailers and financing providers, such as CreditPlus Bank specialising in consumer credits, are placing their trust in IDnow’s solution eSign: "Nowadays, dealers and final consumers expect a smooth conclusion to their digital financing. With IDnow eSign, we can offer our e-commerce partners this service as a mobile solution which can be seamlessly incorporated into the online shop system. This simplifies the credit process for all participants and minimises the dropout rate on the final customer side", states Björn Hausner, Key Account Manager at CreditPlus.

With the solution offered by the identification expert IDnow, the credit application can be signed in just a few minutes whilst buying in the online shop. To do so, the user must get identified by video chat before he agrees to the contract with a few mouse clicks and a so-called Qualified Electronic Signature (QES). The signature via IDnow eSign thereby meets the highest security standards, as well as all legal requirements, and is as legally binding as a handwritten signature. The issuing of the required certificate is done by a so-called Trust Service Provider (TSP). After successfully signing the contract, the dealer immediately receives the information and can process the order. In this way, with a digital financing service, online retailers cannot only optimise the checkout process, but also increase their customer loyalty in the long term.

About IDnow GmbH
IDnow provides the world’s most advanced machine-learning technology for its Identity-as-a-Service platform that can verify in real time the identities of more than 7 billion people from 193 different countries. Our patent-protected video identification and e-signing solutions help our clients save money, improve customer conversion rates and streamline the onboarding process. We are backed by the venture capital investors BayBG, Seventure Partner, G+D Ventures and Jet A and a consortium of well-known business angels. Founded in 2014, we already count a large and fast growing team of 300, making us one of Europe’s fastest growing fintechs. Clients are leading international blue chip companies such as Commerzbank, UBS, Sixt, Erste Bank and Telefonica Deutschland, many fintechs like Fidor, N26 and smava as well as many blockchain-based companies. IDnow was awarded “Most Successful Fintech” in 2017.

Further information available at www.idnow.io.