The acquisition will enable more than 1,000 financial institutions to access a broad range of consumer identity and authentication solutions directly from Prove
New York, NY, (July 29, 2020) – Prove (formerly Payfone), the modern platform for continuous identity authentication, today announced the acquisition of mobile authentication lines of business from Early Warning Services, LLC, a consortium owned by seven of the country’s largest banks.The acquisition includes Early Warning’s mobile authentication business, Early Warning’s multi-factor authentication and orchestration solutions, and the Authentify® line of business.
TechCrunch reporter Ingrid Lunden covered the news of our $100 million funding round led by Apax Digital in an exclusive last week.
“As an increasing number of daily and essential services move to digital platforms — a trend that’s had a massive fillip in the last few months — having efficient but effective ways to verify that people are who they say they are online is becoming ever more important,” Lunden writes. “Now, a startup called Payfone, which has built a B2B2C platform to identify and verify people using data (but no personal data) gleaned from your mobile phone, has raised $100 million to expand its business.”
Lunden also notes that the market for authentication and verification services is projected to grow to $12.8 billion by 2024, according to MarketsandMarkets. She goes on to explain that while “there seems to be an almost infinite amount of variations, approaches and companies offering services to carry out the work… there’s also a push to develop more seamless and user-friendly, and essentially invisible, approaches, and that’s where Payfone sits.”
Lunden also highlights that Payfone’s commitment to and focus on protecting users and their data privacy has been a differentiator and has helped it stand out to investors.
Read the full article at TechCrunch
Investment Will Accelerate Privacy-First Customer Identity Platform with Strategic Acquisitions
New York NY, June 18, 2020 – Payfone announced it has raised $100 million to acquire strategic assets, further strengthen its machine learning capabilities, and build a cross-industry consortium to secure digital transactions and experiences. The investment was led by funds advised by Apax Digital, the growth equity team of Apax Partners.
Payfone is setting a new standard for digital identity verification and authentication. Its customer identity platform enables the world’s largest financial institutions, healthcare organizations and technology companies to bring speed and security to their onboarding, digital servicing and call center processes.
Payfone’s authentication solutions, including its unique Trust Score™ tool, are built on ten years of proprietary phone intelligence that enable Payfone to anonymously measure a phone number’s reputation and risk with real-time processing of behavioral signals. Payfone’s platform instantly detects burner phones, spoofed calls, real-time SIM swap fraud, and synthetic identities, while removing friction from legitimate transactions. Payfone also provides call verification solutions that run passively in the background of a phone call, allowing faster issue resolution.
Rodger Desai, CEO of Payfone, said, “The mobile phone is rapidly becoming the secure passport for navigating our digital lives. With one in three US consumers already authenticated by Payfone, this investment accelerates our ability to set the standard for the authentication process. As we build out a cross-industry consortium, more enterprises will be able to access Payfone’s real-time fraud and risk signals to prevent account takeovers while passing more transactions.”
Daniel O’Keefe, Managing Partner of Apax Digital said, “Identity is the key enabling technology for the next generation of digital businesses. Payfone’s Trust Score™ is core to the real-time decisioning that enterprises need in order to drive revenue while thwarting fraud and protecting privacy.”
Zach Fuchs, Principal of Apax Digital added, “Payfone’s technology enables frictionless customer experience, while curbing the mounting operating expense caused by manual review.” Concurrent with the investment, Mr. O’Keefe and Mr. Fuchs will join Payfone’s board of directors.
Joining the investment round are new investors Sandbox Insurtech Ventures and Ralph de la Vega, the former Vice Chairman of AT&T. Existing investors MassMutual Ventures, Synchrony, Blue Venture Fund, Wellington Management LLP, and former CEO of LexisNexis Andrew Prozes also participated.
For more information about Payfone’s suite of identity verification and authentication solutions, visit payfone.com.
Payfone is a rapidly growing software and data analytics company based in New York. Payfone’s customer identity platform secures the digital experiences of the banking, insurance, telecommunication, retail, and healthcare industries. Its patented Trust Score™ enables enterprises to pass more digital transactions while thwarting fraud attacks. For the latest updates follow us at https://www.linkedin.com/company/payfone.
About Apax Digital
The Apax Digital Fund specializes in growth equity and buyout investments in high-growth enterprise software, consumer internet, and technology-enabled services companies worldwide. The Apax Digital team leverages Apax Partners’ deep tech investing expertise, global platform, and specialized operating experts, to enable technology companies and their management teams to accelerate the achievement of their full potential. Over its more than 40-year history, Apax Partners has raised and advised funds with aggregate commitments of over $50 billion. These funds provide long-term equity financing to build and strengthen world-class companies. For more information see: www.apax.com
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Phone intelligence or mobile intelligence refers to a robust set of phone and mobile signals that can be analyzed and synthesized to provide insight for the purposes of identity verification, identity authentication, and fraud prevention. Examples of telecom signals that feed phone intelligence include:
First off, let’s identify some other identity verification and identity authentication methods that mobile intelligence can either replace or strengthen:
If you think about how many people have mobile phones, how long they have had them, and how often they use them, it’s clear why signals from mobile phones provide the most detailed, longitudinal (repeated observation or examination over time) view of a consumer’s digital footprint. Because this digital footprint is composed of so many different signals over such a long period of time and with such frequency, it is highly correlated with the identity and trustworthiness of the associated consumer.
One important thing to note is that in order to have the maximum effect and accuracy, mobile signals should be paired with signals from other authoritative data sources, such as signals from banks and credit bureaus. Combined with signals from a diverse array of authoritative sources, phone intelligence can give powerful insight into whether your customer is who they say they are.
Phones have built-in, passive authentication, encryption and privacy. With phone intelligence, a consumer does not need to download a separate app or purchase a physical hardware token to authenticate themselves. The process can take place invisibly and seamlessly through their existing mobile device, improving the customer experience. If you think about the experience a customer goes through using some of the more traditional methods of identity verification – having to remember the answers to security questions, fumbling with passcodes – it’s obvious why a user flow that either eliminates or minimizes those points of friction is better.
Further, unlike with KBA, there is no need to share personally identifiable information (such as social security number, address, or answers to secret questions) to verify your identity because mobile intelligence is built upon a privacy-first, zero-knowledge architecture.
Phone intelligence has many different applications but some popular use cases include:
Phone intelligence signals can be used not only for mobile interactions but also across web and call center channels.
Payfone provides the most comprehensive mobile intelligence on the market with over 10 years of tenure, behavior, and other telecom signals. We analyze 6 million new events every day, such as phone number changes, disconnects, account ports, and SIM swaps; and we uniquely have 90% coverage of the 700 million US phone numbers – the highest in the industry. Through our patented Trust Score™, we synthesize these telecom events with additional signals from our network of authoritative data sources to provide the most complete view of your customers’ identities in a private, tokenized manner.