Did you know that a whopping 70% of abandoned carts are due to lengthy and cumbersome checkout processes? [ Baymard Institute 2023 Cart Abandonment Rate Report] In today's digital world, a seamless user experience reigns supreme, especially in the ever-evolving Fintech landscape. Bank account verification, a crucial step for businesses to ensure user identity and prevent fraud, can often become a roadblock in this journey.
Here at Digitap, we understand the importance of striking a balance between security and speed. Let's explore the different verification methods available, highlighting their strengths and exploring how the innovative Reverse Penny Drop method can revolutionise your user experience
The Bank Account Verification Landscape
- Penny Drops: This traditional method involves depositing a small amount (typically cents) into the user's account. The user then confirms the received amount, verifying ownership. While offering a simple approach, penny drops can take several business days to complete, potentially causing friction for users expecting instant verification.
- Pennyless Verification: This method sends micro-transfers (typically less than $1) to the user's account, followed by verification of the last two digits of the deposited amount. While faster than penny drops, it often requires multiple attempts due to insufficient funds or failed transactions, impacting user experience.
Reverse Penny Drop: Beyond basics
This ingenious method leverages the user's existing Unified Payments Interface (UPI) app to initiate a secure and instant verification process. Here's how it works:
- User initiates verification: The user selects their preferred UPI app from a list provided by Digitap.
- Secure authorization: The user authorizes a small, pre-approved amount (typically ₹1) to be sent from their UPI account to a secure intermediary account.
- Instant verification: Digitap receives instant confirmation of the transaction, verifying the user's account ownership and bank details.
- Refund: The pre-approved amount is immediately refunded back to the user's UPI account.
Benefits of Reverse Penny Drop Verification
- Faster Onboarding: Verification happens in seconds, minimizing friction and improving user experience.
- Enhanced Security: No sensitive bank details are shared, reducing the risk of fraud.
- Seamless Integration: Integrates seamlessly with existing KYC and AML workflows.
- Improved Conversion Rates: Faster verification leads to higher conversion rates and reduced cart abandonment.
Not just our word, here's what the statistics say:
- A recent report by Capgemini found that 63% of global consumers are willing to share their bank account information for a faster checkout experience.
- A recent report by Aite Group predicts a 30% increase in adoption of instant verification methods like reverse penny drop by 2025.
Unlocking the Potential with Digitap
At Digitap, we're committed to providing innovative and secure solutions for the Fintech industry. The Reverse Penny Drop method is just one example of our dedication to making bank account verification faster, easier, and more secure.
Get in touch today to learn more about how Digitap can help you streamline your verification process via the RPD method and improve your user experience.