Next month the eyes of the world will once again be on Brazil, this time for the 2016 Summer Olympics. Despite all its recent turmoil – the trifecta of political, economic and health issues – I’m optimistic that Brazil will put on a fun and safe show for us all. More importantly, I’m optimistic about the country’s overall prospects.
The turmoil has kept many companies away from Brazil. But over the long run, businesses with ambitions in Latin American will have no choice but invest there. It is, after all, the world’s sixth largest country by population and seventh largest economy by GDP. Ignore it during this short-term instability, and you might lose your chance to participate in the long run.
The big eCommerce marketplaces recognize this. The financial press prints story after story of Alibaba, Rakuten, Amazon, Mercado Libre and others investing heavily in Brazil. Why do this in the face of the country’s current instability? Because competition among them is brutal. If any of them cedes market share today, competitors will be all too happy to take over relationships with their sellers and buyers.
GDC got the chance to see this competition firsthand earlier this year. We launched a Brazil electronic identity verification service to help eCommerce marketplaces onboard sellers quickly.
Verifying the identities of merchants before they can begin selling goods on marketplaces has become common practice in the industry. Without it, bad actors are quick to infiltrate a marketplace with counterfeit goods and other forms of fraud. Using identity verification – asking the seller to provide information proving he is who he says he is – stops fraudsters from registering under false pretenses. They never get access to buyers, so fraud goes down and customer satisfaction goes up.
One of the big eCommerce marketplaces recently started using the Brazil electronic identity verification service. Previously, they had a clunky seller on-boarding process. It leaned heavily on a manual workflow, used multiple data reference sources, and required new merchants to provide a lot of personal information. For example, applicants had to scan and submit photo ID’s to a document verification service as part of the process. The whole thing was time-consuming, inconvenient for sellers, and expensive for the client to maintain. Worst yet, they were losing sellers. The friction of on-boarding had legitimate merchants abandoning their registrations before they could be approved.
GDC was glad to help. Our Brazil electronic identity verification service consolidated their entire process into a single registration form. When a seller submitted his name, address and national tax ID, a single API call to our platform queried multiple sources of credit, government, commercial and consumer identity reference data from our in-country Brazilian partners. The various sources cover over 95 percent of Brazil’s addressable adult population, and we were able to help our client match and approve nearly 75 percent of all applications within seconds.
We streamlined their process, limited the need for manual intervention in the workflow, and reduced their dependence on document verification and multiple data services. Most importantly, we got rid of the friction that had so many sellers abandon the registration process.
This is what GDC does both in Brazil and in the many other countries integrated into our global electronic identity verification platform. We give you one point of access to instantly verify the identities of customers, partners or counter-parties no matter their country of origin. We help you bring in the good customers quickly while weeding out the bad ones.
If your business is expanding into Brazil, and you need help with verifying the identities of your customers, let’s talk. In the meantime, enjoy the Olympic show Brazil has prepared for the world.