Learning from earlier experiences where a person orders products online and then refuses to accept delivery of the same, online retailers are soon coming up with a new technique to verify identity. For this, online retailers have outsourced Zumigo, a startup backed by Wells Fargo and Intel Capital.
Zumigo will help identify whether the person is at the location before delivering cash on delivery through telecom operators. Though Zumigo may get information from telecom companies and help reduce delivery cost for online marketplaces, it may find it difficult to tie up with credit bureaus in India.
The e-commerce companies suffered losses of crores of rupees from false mailing addresses and turned away goods that have become quite rampant these days.
“We identify the name and address through mobile number and credit card information," said Chirag Bakshi, chief executive of Zumigo, a startup backed by Wells Fargo and Intel Capital.
"This is enabling security and identity." In online transactions, the liability rests with the merchants. Zumigo is in talks with merchants and bureaus in India to help them identify a customer and check fraud.
"We are regulated under Credit Information Companies Regulation Act (CIRCA), which does not allow us to share information with anybody other than specified user," said Mohan Jayaraman, managing director of Experian Credit Information Company of India.
CIRCA clearly defines a specified user who can register with a credit bureau as member entity. Other than credit institutions, insurance companies, telephone services providers, credit rating agencies registered with Securities and Exchange Board of India (Sebi), a stockbroker or sub-broker registered with Sebi, a trading member of recognised commodity exchange, Sebi and Insurance Regulatory and Development Authority are regarded as specified users.