Vonage > Case Studies > BitQuick Enhances Transaction Security and Efficiency with Vonage Verify API

BitQuick Enhances Transaction Security and Efficiency with Vonage Verify API

Technology Category

Application Infrastructure & Middleware - Blockchain

Applicable Industries

Telecommunications

Applicable Functions

Procurement
Quality Assurance

Use Cases

Fraud Detection
Machine to Machine Payments

Services

System Integration

About The Customer

BitQuick is a leading cash-for-bitcoin marketplace that 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. BitQuick is committed to providing a secure and efficient platform for its users, and as such, was seeking a solution to the challenge of fraudulent and illegitimate transactions that were affecting its operations.

The Challenge

BitQuick, a leading cash-for-bitcoin marketplace, was facing a significant challenge with fraudulent and illegitimate transactions. Many online users were placing bitcoin orders without any intention of paying for their purchases. This resulted in bitcoins being 'locked up' in escrow, making them unavailable for purchase by other buyers. This issue was not only affecting BitQuick's transaction volume but also its overall business operations. The company needed a solution that would allow them to verify purchases by authenticating the buyer for each transaction. Additionally, BitQuick was looking for a cloud communications partner that could support their future global expansion.

The Solution

BitQuick found its solution in Vonage's Verify API. This industry-leading, pay-per-conversion phone verification solution with patented intelligent failover allows organizations to instantly verify users globally and achieve the highest conversion. By implementing Verify, BitQuick was able to ensure that only legitimate buyers with verified phone numbers could place transactions. The solution also enabled BitQuick to verify transactions using SMS-based two-factor authentication, reject virtual or VoIP numbers, and determine fraud risk by comparing IP-based locations with phone numbers. The integration of Vonage Verify API was completed in a matter of minutes, providing BitQuick with a quick and efficient solution to their challenge.

Operational Impact

The implementation of Vonage Verify API brought significant operational benefits to BitQuick. The solution effectively reduced the number of holds on unpaid orders, thereby increasing the amount of bitcoin available for legitimate purchasers. This not only improved the efficiency of BitQuick's operations but also enhanced the user experience on the platform. Furthermore, the solution helped to legitimize online purchases, which in turn boosted the Average Revenue Per User (ARPU) for each of their users. The successful integration of Vonage Verify API has positioned BitQuick for future global expansion, with the ability to instantly verify users globally.

Quantitative Benefit

Increased order success rate from 35% to 55%
Doubled overall transaction volume during the initial 60 days after implementing Vonage Verify API
Accurate and predictable cost forecasting as volume increased due to paying only for users who correctly verified their mobile numbers