Stripe Identity: AI-Powered ID Verification | Stripe

Stripe Enters the Identity Verification Market with Stripe Identity

Several startups have recently positioned themselves as the “Stripe for identity verification,” aiming to simplify ID authentication integration for developers. Now, Stripe itself is entering this space with the launch of Stripe Identity – a self-service tool designed for companies to verify user identities.

How Stripe Identity Works

Stripe manages user data securely through encryption. The system utilizes both computer vision and machine learning technologies to accurately compare government-issued IDs with live selfies submitted by users.

According to Stripe, the verification process can be completed in as little as 15 seconds.

Beta Launch and Current Users

The service is currently in beta, available in 30 countries. However, it has already been utilized by several partners, including:

• Discord (as part of its ID verification feature)
• Peerspace (for user and merchant onboarding)
• Shippo (to identify and verify high-risk users)
• Additional unnamed customers seeking to prevent account takeovers

Developers can request access to the beta program. Further details about the service will be discussed at Stripe Sessions, the company’s upcoming developer conference.

Expanding Beyond Payments

Rob Daly, Head of Engineering for Stripe Identity, stated that businesses have been requesting a streamlined and rapid identity verification solution. Stripe Identity provides precisely that.

This launch highlights Stripe’s evolution into a broader service provider for businesses, extending its capabilities beyond traditional payment processing.

Diverse Use Cases for Identity Verification

While payments remain central to Stripe’s offerings, identity verification has applications extending beyond e-commerce fraud prevention. It also supports:

• Preventing account takeovers
• Age verification
• Compliance with “know your customer” (KYC) regulations
• Combating bots and fraudulent accounts

Notably, existing Stripe customers are not required to use Stripe Identity.

The Growing Importance of API-Enabled Identity Services

Identity verification is increasingly crucial for enabling secure online interactions. Like payments, it’s a complex process requiring integration of various technologies and data sources.

Building such a system in-house is often not a core competency for many businesses, creating an opportunity for specialized third-party providers.

Competition in the Identity Verification Space

Stripe is not alone in this market. Other key players include:

• Jumio
• Onfido
• Veriff
• Berbix
• Passbase

Flexible Integration Options

Stripe Identity offers two integration methods. It can be seamlessly integrated into existing checkouts or workflows via code. Alternatively, it can be deployed as a standalone service, issuing verification links for suspicious transactions or high-risk users.

Built In-House with Years of Experience

Unlike some of its recent offerings, Stripe Identity was developed internally. The company has been utilizing this technology for nearly a decade to verify merchants and mitigate fraud.

Delia Pawelke, Head of Global Risk Strategy and Onboarding Policy at Stripe, emphasized the company’s experience in building a secure and robust global identity verification system.

Stripe has refined the verification service, offering improved guidance for optimal photo capture.

Pricing Information

Stripe will charge fees on a “per transaction” basis, but specific pricing details have not yet been disclosed. Updates will be provided as more information becomes available.