Tom Donlea: Cross border commerce is enticing for merchants because many of the big growth markets are outside of the United States.
If you look at Brazil, you look at China, these are economies where the middle class is growing and they have greater buying power. They also have an interest in buying the consumer brands that have become global.
Another reality of cross border commerce is that it's much harder to verify identities outside of the Commonwealth countries. Countries as the United States, the UK, Australia. These all have fairly robust credit bureaus and standards for identity verification. When you move into emerging markets, it's much harder to determine whether or not the identity being presented is legitimate.
What we've been able to do in partnership with Kount is to help provide a more robust identity verification. We look at global signals like name to email connections, name to phone connections, even simple signals like the phone type for that phone number.
Many merchants choose to outsource any shipments or any business that they're doing overseas. This is a fine choice for many because then they don't necessarily deal with the risk, they also then lose data that they would be gathering if they dealt with the consumers directly. Many merchants are trying to figure out how to bring those transactions in house and manage them, but they need a fraud platform that's truly global, bringing the device identification as one key global element. Then working in partnership with identity verification companies who can source data globally and bring those truly global signals to increase the confidence in that identity.
We help merchants standardize and verify addresses globally in order to cut down costs for lost shipments, and potentially avoid fraud. At Whitepages Pro we recently talked to our customers and published an eBook about cross border commerce and the fraud associated with that type of activity. We found in conversations with these merchants that they experience 50 percent higher fraud rates when shipping across borders.
We help merchants standardize and verify addresses globally in order to cut down costs for lost shipments, and potentially avoid fraud.