Socure Acquires Qlarifi in Move Toward BNPL Credit Infrastructure

Socure acquired Qlarifi to establish what it called “the industry’s first unified identity, anti-fraud and BNPL credit infrastructure.”

The combination brings together Socure’s artificial intelligence-first platform for global identity, compliance and risk decisioning and Qlarifi’s real-time buy now, pay later (BNPL) consumer credit database, the companies said in a Friday (Dec. 5) press release.

The infrastructure created by the acquisition will enable consumers to build credit through BNPL repayment, reduce lenders’ and merchants’ first-party fraud losses, and provide regulators with transparency and reporting, according to the release.

It will also enable lenders to validate that the applicant is the same real person across multiple BNPL providers, identify cross-provider loan stacking and overextension, reduce first-party fraud losses, enable thin-file consumers to access credit and lower fraud-driven payment costs for merchants, per the release.

“Qlarifi built the first real-time BNPL consumer credit database, and by combining it with SocureID and our Identity Graph, we can deliver the unified infrastructure that all market participants have been asking for,” Socure CEO and founder Johnny Ayers said in the release.

Qlarifi co-founder and CEO Alex Naughton said in the release: “By joining forces with Socure, we now have their tremendous commercial scale, balance sheet and world-class analytics behind us to build the infrastructure that will enable responsible lending at scale and demonstrate to regulators that the industry can protect consumers while expanding access to credit.”

The news came about a year after Socure announced its acquisition of Effectiv, an AI orchestration and decisions platform. Socure said at the time that the deal would create a unified identity and fraud and risk decision engine, and offer its partners a “single view of identity.”

“With a world-class platform from Effectiv and analytics that allow for adaptive and progressive risk decisioning, we will be able to help our partners with a single view of identity to drive instant risk and trust decisions anytime, anywhere,” Ayers said at the time in a press release.

In an earlier acquisition, announced in June 2023, Socure bought document verification startup Berbix, saying the transaction allowed Socure to integrate Berbix’s technology and unveil its Predictive Document Verification (DocV) 3.0 solution.