Onfido Global ID Verifier Partners with BitPay to Accept Bitcoin Payments, Plans International Expansion
Onfido will start accepting Bitcoin payments after their partnership with BitPay. In exchange, BitPay will use Onfido to implement KYC procedures when registering new users.
The integration of Bitcoin payments will enable Onfido to access clients that are overlooked by conventional financial institutions. This is because BitPay is accessible using a smartphone, whereas credit cards require an individual to have an active bank account. Registration will be easy since Onfido will provide the identity verification solution.
The prevalence of fraud in the crypto space has increased the need for observing practices such as KYC and AML. Under this partnership, BitPay will use the technology provided by Onfido to implement KYC. So far, several digital trading platforms have integrated Onfido for KYC/AML purposes.
— BitPay (@BitPay) January 23, 2019
Other advantages of Bitcoin payments over traditional methods is the increased transparency and better security. This is because all records are recorded and stored on an immutable blockchain ledger. On the contrary, credit cards are vulnerable to fraud and incidences of identity theft. In 2017, merchants lost a whopping $20 billion to chargebacks initiated by dishonest customers.
Onfido creates a digital identity using an individual’s official ID and a photo. Once the profile is created, users can easily access the system that uses the Onfido service.
Husayn Kassai, the CEO of Onfido, said that the partnership with BitPay will enable the company to extend its service to the crypto space. In the long run, Onfido hopes to introduce their services to all sectors of the economy.
BitPay is a global leader in the crypto payments industry. As of now, it handles transactions worth $1 billion every year. BitPay accepts Bitcoin payments on behalf of their clients and then converts it into fiat.
Stephen Pair, the CEO of BitPay, said that they chose Onfido because of the simplicity of their identity verification solution.