BitQuick Fights Fraud and Illegitimate Transactions with Vonage
After BitQuick integrated the Vonage Verify API, their volume of transactions significantly increased as a result of decreasing the number of fraudulent and incomplete transactions.
ChallengeIllegitimate and fraudulent bitcoin orders “lock up” bitcoins in escrow, disabling them for purchase by other buyers.
SolutionVonage Verify API
ResultsIncreased order success rate from 35% to 55%; doubled overall transaction volume.
BitQuick, the leading cash-for-bitcoin marketplace, provides highly secure and convenient online peer-to-peer transactions via cash deposit in a matter of hours. To purchase bitcoins on BitQuick.co, a buyer deposits cash into the seller’s account and the bitcoins are sent shortly after uploading an image of the deposit receipt.
The Challenge of Fraudulent and Illegitimate Transactions
Many online users placed bitcoin orders on BitQuick without any intention of paying for their purchases, resulting in bitcoins “locking up” in escrow, disabling them for purchase by other buyers.
To solve this critical business issue, BitQuick required a solution that would allow them to verify purchases by authenticating the buyer for each transaction. In addition, it was important for the company to integrate with a cloud communications partner that could support its future global expansion.
- 55% order success rate (up from 35%)
- 2X increase in overall transaction volume
Enter Vonage's Verify API
Vonage Verify—the industry’s only turnkey, pay-per-conversion phone verification solution with patented intelligent failover—allows organisations to verify users globally instantly and achieve the highest conversion.
By implementing Verify, BitQuick is able to:
- Make sure that only legitimate buyers with verified phone numbers are able to place transactions.
- Verify transactions using SMS-based two-factor authentication.
- Integrate in a matter of minutes.
- Reject virtual or VoIP numbers.
- Determine fraud risk by comparing IP-based locations with phone numbers.
Verify Delivers Certainty — and Growth — in User Transactions
Using Vonage Verify, BitQuick successfully sends SMS-based verification codes to users to confirm that they intend to make the payment, effectively reducing the number of holds on unpaid orders and increasing the amount of bitcoin available for legitimate purchasers.
“Since we integrated Vonage’s Verify API, our volume of transactions has significantly increased as a result of decreasing the number of fraudulent and incomplete transactions,” said Mubaslat.
Specifically, Verify enabled BitQuick to:
- Increase their order success rate from 35% to 55%, while also doubling the overall transaction volume during the initial 60 days.
- Pay only for those users who correctly verified their mobile numbers, which provided accurate and predictable cost forecasting as volume increased.
- Increase the volume of bitcoins, resulting in an increase in successful transactions.
- Boosted the ARPU for each of their users by legitimising online purchases.
With its enhanced processing for legitimate transactions, BitQuick was named one of the top 5 safest and easiest places you can buy bitcoin in the United States by The Merkle.