PayU GPO verifies customers faster with AU10TIX’s Azure-based solution

PayU GPO enables businesses to accept and process payments with ease by offering hundreds of payment methods as well as PCI-certified platforms. Headquartered in Netherlands and operating in more than 40 emerging markets across Latin America, Central & Eastern Europe and Africa, the company’s vision is to create an inclusive world without financial borders where businesses of all shapes and sizes can prosper.

Handling over 10 million transactions a day, PayU GPO requires robust risk mitigation measures. Central to this is the Know-Your-Customer (KYC) process, which involves verifying the identity of customers through a series of checks to ensure they are who they claim to be. This process is not only mandatory for regulatory compliance but also crucial for preventing financial crimes and avoiding financial losses.

“Operating as an online payment service provider we are exposed to various types of risks - regulatory, fraud, and credit. So, we are careful not to add to our portfolio merchants who might generate excessive risk,” says Tomasz Kowalak, Head of Risk Operations EMEA at PayU GPO. “The continuous work of both our internal teams and our partners, who provide us with top-notch ID verification, aims to improve the efficiency of our KYC processes and grow the conversion while remaining compliant with all regulations,” he adds.

A partnership driven by precision and trust

To maintain the highest quality of its merchant verification and re-verification while the number of newly onboarding merchants is constantly growing, PayU GPO started to look for a reliable partner who would support streamlining these processes by utilizing artificial intelligence (AI) and automation. “We needed better accuracy and process automation," recalls Kowalak. This partner turned out to be AU10TIX, a firm specializing in identity management and automating identity verification.

AU10TIX brought a multi-layered approach to PayU GPO’s identity verification that relies on extensive third-party security databases and AI models. AU10TIX’s identity verification solution is powered by Microsoft Azure, and for good reason. “We chose Azure as it is the only hybrid cloud offering in-depth security and unmatched compliance. Being open source, it boosts our speed and refocuses us on problem-solving,” shares Ron Levi, Customer Success Manager at AU10TIX.

AU10TIX examines the accuracy of its AI models and releases monthly updates to all its clients, including PayU GPO, which adds operational transparency and builds trust. AU10TIX also utilizes Azure Virtual Machines, Kubernetes Service, Cosmos, and SQL Database to enhance the speed and availability of its services. Azure Log Analytics, App Service, Synapse, Event Hub, Functions, and Stream Analytics secure the two-way communication of sensitive data.

Frictionless verification process

PayU GPO utilizes the AU10TIX ID Verification (IDV) solution through Azure API Management. Images provided by a merchant in the ID verification process undergo several checks, including document classification and quality optimization, before forgery tests are performed. Based on this data, a final response is generated using PayU's internal business logic.

PayU GPO also uses the AU10TIX face comparison tool, which compares the face of the user with the photo on their ID. This verification process is rooted in complex algorithms that analyze various facial parameters, further mitigating the risk of identity theft.

“AU10TIX is meeting our expectations by offering an automated solution that utilizes advanced AI to accurately authenticate identities, without the need for a human agent to review,” says Kowalak.

A transformation in authentication

"Our goal was to screen customers faster while at the same time ensuring a frictionless onboarding process for them. By implementing the AU10TIX solution we’ve reduced the time of the ID verification process down to an average of six seconds, or, in rare cases, to a couple of hours, if detailed checks are required,” notes Kowalak. “This change improved the overall experience and thus the satisfaction of our customers who are primarily looking for a quick service.”

“We strive to make the ID verification process nearly invisible to merchants and improve our conversion at the same time. Thanks to AU10TIX’s algorithm we increased the conversion rate by up to 25 pp, depending on the onboarding flow,” remarks Kowalak.

Automation of such projects often has a positive impact on the productivity of the teams and PayU GPO was no exception. "Now, fewer people are needed to manage the verification process, enabling us to assign them to other projects where they can further develop their skills," confirms Kowalak.

Added scalability and adaptability

AU10TIX's Azure-based infrastructure also offers PayU GPO the required scalability. "If we run a promotion, we can handle the influx of new customers quickly and efficiently, guaranteeing a smooth onboarding experience for them," says Kowalak. "If we need to check all the IDs in our portfolio, we know the API will respond. Knowing that we have a partner who can check IDs in 5-8 seconds gives us the confidence to engage large entities and that potentially increases our revenues. In essence, AU10TIX contributes to PayU GPO’s business continuity."

AU10TIX serves as a conduit for data exchange, equipping PayU GPO with insights into common mistakes and rejection reasons. "With AU10TIX, we get valuable and practical information that is hard to obtain on the market. It enables us to improve our processes and communication with our merchant partners, letting us confidently scale into new regions and segments," sums up Kowalak.

In addition, the number of international merchants cooperating with PayU GPO is growing exponentially and AU10TIX’s expertise in local regulations regarding identity authentication is highly supportive in terms of the verification process. Kowalak notes: “Merchants from around the world want to use our online payment services in the 40+ high-growth markets we operate in. Each of these markets owns its unique IDs and regulations. AU10TIX supports us by recognizing if a document is valid in a specific geography and in line with the local legal requirements.”

Despite across-the-board shifts and advances, the integration with AU10TIX was smooth. “We didn't have to spend much time on system tuning. The initial setup provided good results from the beginning. There wasn't a constant struggle to improve by basis points. Au10tix was able to deliver strong results right away,” adds Kowalak.

For Kowalak, the success of the implementation speaks volumes about the strong partnership between PayU GPO and AU10TIX. “Our fast responses speak to the efficiency of their algorithms. It's about the accuracy and quality of the checks,” he says. “With AU10TIX, it's easy to exchange information because they have insight into some of our data and understand our processes. They know the common mistakes and reasons for rejection, which allows us to improve our processes and communication with the merchants.”