End of year in retail: identity verification technology supports high conversion and growth of e-commerce, says Unico

In a decisive period for Brazilian retail, which begins on Black Friday and extends to the end of December, the combination of identity verification technology and anti-fraud intelligence has proven decisive to sustain conversion and capture demand at scale. Data from Unico, the leading identity verification network, reveal that, only in November, more than R$ 1 billion was transacted through the Unico IDPay 3 solution that verifies the identity and ownership of the credit card at the time of online purchase , especially for the week of Black Friday, which registered growth of 35% compared to the previous week.

On Black Friday day, specifically, the total value of transactions made (GMV) was 114% higher than the previous day, without any occurrence of technological incidents (RElevant performance in a context in which the increase in the volume of purchases is usually accompanied by peaks of fraud and undue refusals. According to a recent study by Unico, in partnership with Opinion Box, Brazilian e-commerce loses between R$ 120 billion and R$ 150 billion per year with denied payments, most of them being legitimate consumers.

This challenge gains even more relevance at the end of the year. According to the Brazilian Association of Artificial Intelligence and E-commerce (ABIACOM), purchases over the internet promise to move R$ 26 billion in December. In this scenario, maintain high approval rates in the checkout it is decisive for retail to capture the maximum potential of this period.

As a reference, during Black Friday, Unico IDPay registered a high of 92% in the GMV received and multiplied by five the approved volume, consolidating a cumulative growth of 338% in GMV in just two years.

Another relevant indicator was the evolution of the card validation rate, which jumped from 46% to 81%. The average ticket approved also grew 26%, reinforcing the importance of using identity verification technology in higher value purchases typical behavior of end-of-year purchases. Among large retailers, who use the IDPay solution and have had significant results in combating fraud, Magazine Luiza stands out, with one of the best market approval rates 60%.

In the sectorial cut, Tourism and Transportation stood out, with a high of 18.6% in the billing on the day of Black Friday. According to data from Unico IDPay, the GMV received by the sector in Brazil grew 64%, in this season of discounts, indicating high confidence of companies in the technology of identity verification as an ally to capture demand.

“The data shows that the problem of denied payments is not only in fraud, but in the way the market validates transactions. Systems based on generic rules continue to block real consumers. When we confirm the identity of the customer, we can keep approval high even at the most crucial and highest volume moments for retail, such as Black Friday and Natal”, says Rodrigo Magalhaes, head of Unico IDPay.

This performance reinforces the thesis pointed out by the study“Anatomy of Denied Payments”, according to which nine out of ten transactions refused in Brazilian e-commerce are legitimate.In a highly competitive end of the year, reduce friction in the checkout it is no longer just an operational issue and has become a strategic factor for growth, loyalty and capturing the maximum potential of retail.