Micromobility – short-distance rented public transportation – has become more commonplace. And scaling to meet that demand has left some scooter, bike, and car rental companies to make compliance decisions that push away legitimate customers more than they deter potential fraudsters.
For many micromobility businesses, juggling compliance with multiple state and city regulations while figuring out how to grow but also deterring fraud and theft doesn’t have to be as difficult and time-consuming as it may seem. In fact, compliance verification really isn’t the blocker that many companies think it is.
When done correctly, ID verification can be the key differentiating factor that leads riders to choose your service over others.
Your customers are paying attention to how you verify their ID
Riders expect renting from you to be a simple and seamless experience– and they have very little patience when it isn’t.
If the app is unable to verify their ID or takes longer than a few seconds, the rider will get frustrated and most likely not use your service. It’s not like they’ll be unable to get where they need to go– new e-bike, e-scooter, and ridesharing services are continuing to pop-up as population and demand increases. And a bad experience with your app can lead riders to tell others about their experience with their social circle, preventing others from using your services.
The opposite, of course, is also true. Make ID verification simple and you have yourself a repeat customer who talks about their positive experience with others. In fact, in our experience, we’ve found that a simple and automated ID verification process with selfie reverification can actually increase rider conversion by up to 20%.
Fraudsters are also paying attention to how you verify IDs
Would-be bad actors and fraudsters arguably pay even closer attention to how you verify prospective customer IDs. While customers want ease-of-use– fraudsters are looking closely for any vulnerabilities that they can exploit. And the micromobility businesses that have more stringent processes will deter those fraudsters– leading them to target the businesses that aren’t as secure.
Rental companies, however, don’t need to lock down the customer experience. And they don’t necessarily need to hire a team of folks to manually check IDs. There are four main ways to verify someone’s identity with document identity verification: having an employee check the person’s government-issued ID in person, leveraging an ID verification software solution to instantly and automatically check their government-issued ID, having the customer submit an image of their government-issued ID and selfie online for an employee to remotely verify, or using security questions and two-factor authentication to verify a customer’s identity.
There’s no one-size-fits-all solution that works for all businesses, and the solution that you choose should not only deter fraud but also be scalable and grow with you.
Choosing the right ID verification solution
So how can you choose the ID verification that’s right for you– a solution that adds enough friction to the signup process to deter fraudsters without turning away legitimate users?
Check out our latest ebook, “Identity Verification in Micromobility: Winning riders through ID checks,” to learn how to choose the type of ID verification solution that’s right for you. This ebook includes everything you’ll need to know about ID verification and includes a checklist for questions to ask your business and any potential vendors. Download the ebook here: https://get.berbix.com/micromobility-ebook