After implementing Stripe Identity with document verification and selfie checks, the fraudulent activity dropped 94 percent. Real users completed verification in under three minutes. Scammers abandoned the platform unable to fake government IDs and live selfies. Legitimate community members trusted the platform more because they knew every user was verified. The marketplace recovered and grew to 25,000 verified users within a year.
Table of Contents
Table of Contents
What Stripe Identity Actually Does
Stripe Identity lets you programmatically confirm the identity of global users so you can prevent attacks from fraudsters while minimizing friction for legitimate customers. The service builds on technology Stripe uses to verify millions of global users for its own Know Your Customer processes.
The platform currently supports five verification check types. Document checks verify authenticity of government-issued identity documents using AI models and automated heuristic analysis for hundreds of document types from over 100 countries. Selfie checks add face similarity comparisons preventing fraudsters from using stolen documents. ID number checks cross-reference provided numbers against third-party databases. Address verification confirms residential information. Phone checks validate ownership of mobile numbers.
Your first 50 verifications are free making it accessible for early-stage platforms testing implementation before committing to volume pricing.
Core Use Cases Driving Adoption
Fraud Prevention for Marketplaces
Peer-to-peer platforms connecting buyers with sellers or renters with owners face persistent fraud from bad actors creating fake accounts. Stripe Identity enables progressive verification approaches that stop fraudsters while keeping friction minimal for legitimate users.
One successful implementation starts with ID number checks for low-risk transactions. If that check fails or transaction values increase, the system automatically requests full document plus selfie verification. This tiered approach keeps legitimate users moving quickly while creating insurmountable barriers for fraudsters attempting account creation at scale.
According to Stripe documentation, the platform allows businesses to control payouts based on verification status to reduce fraud while keeping users on single consistent experiences powered by Stripe. Marketplaces leverage this by releasing payments only after successful verification protecting both buyers and sellers.
Platform and Marketplace KYC Compliance
Financial regulations require businesses to implement Know Your Customer processes before enabling users to receive payouts or access financial services. Connect platforms configure onboarding to collect additional verifications based on their own risk signals.
Freelancing platforms, creator economy applications, and marketplace businesses must verify identity before releasing earned funds. Stripe Identity integrates directly with Connect onboarding handling KYC complexity automatically. The system manages evolving regulatory requirements across different countries so businesses don’t need internal compliance expertise for each jurisdiction.
The documentation notes that handling identity verification details is initially complex and requires vigilance to keep up with constantly evolving regulatory changes around the world. Delegating this complexity to Stripe saves engineering months and reduces compliance risk.
Age Verification for Restricted Content
Platforms offering age-restricted content including alcohol delivery, tobacco products, adult content, or gambling services need reliable age verification preventing minors from accessing restricted services. Stripe Identity verifies identities for individuals age 16 or older using government ID documents.
The selfie portion compares subjects to photos on IDs and can detect digital layering techniques where fraudsters attempt presenting fake selfies. This sophisticated detection prevents the obvious workaround of using a parent’s ID photo without actually being that person.
Telemedicine platforms, pharmaceutical delivery services, and other regulated industries implement verification ensuring users meet eligibility requirements before accessing services. The HIPAA-compliant approach handles sensitive healthcare verification without creating additional regulatory exposure.
Gig Economy Worker Verification
Rideshare platforms, delivery services, and other gig economy businesses must verify worker identities before allowing them to operate on platforms. Background check integrations become more reliable when underlying identity verification confirms workers are who they claim to be.
Stripe Identity guides users through photo-taking and automatically scores each frame selecting the most readable image maximizing success rates. This poor image capture prevention addresses the most common reason legitimate workers get mistakenly rejected during onboarding.
Once Stripe Identity confirms a user’s identity, Financial Connections can verify the user owns a linked bank account to reduce the risk of account takeovers. This combined approach ensures gig workers both are who they claim and control the bank accounts receiving their earnings.
Financial Services Onboarding
Fintech applications, investment platforms, and lending services face strict regulatory requirements before extending financial products to users. Stripe Identity streamlines verification collecting consent with privacy considerations central to the design.
The document notes that by centralizing ID verification with core business operations like payments, subscriptions, and payouts, engineering teams save time on integration and operational teams spend less time switching between systems. This centralization proves particularly valuable for financial services where identity verification connects directly to payment authorization and account management.
Progressive verification flows prove effective. Starting with lightweight ID number checks then escalating to full document verification only when necessary reduces friction for majority of legitimate users while maintaining compliance requirements.
Trust and Safety for Community Platforms
Social platforms, professional networks, and community applications implement identity verification to create trusted environments where members interact confidently knowing others are verified people.
Stripe’s Verified Bot program demonstrates this use case. According to documentation, they built the program on Stripe Identity because the user experience was seamless, integration was easier since they already used Stripe for payments, and users trusted Stripe to keep identity information safe.
Dating apps, professional networking services, and community forums benefit from verified badges indicating users completed identity verification. This social proof encourages genuine interactions while deterring harassment and impersonation.
Frequently Asked Questions
How much does Stripe Identity verification cost?
Your first 50 verifications are free providing access to test implementation without commitment. After that, pricing depends on verification type and volume with document and selfie checks costing more than simple ID number checks. Contact Stripe for current volume pricing.
Which countries does Stripe Identity support?
Stripe Identity verifies documents from over 100 countries globally though the service for businesses is generally available in specific countries including the US, UK, Canada, Australia, and most EU nations. The platform also operates in self-serve public beta in additional countries. Verify current availability for your specific business location before building integrations.
How long does a typical identity verification take?
Most users complete verification in under three minutes using mobile devices. Stripe guides users through photo-taking automatically scoring each frame for quality. Poor image capture is the most common reason legitimate users get rejected so the guided capture significantly improves success rates.
Can users fail verification and try again?
Yes, failed verifications can be deleted and users can start a new verification attempt. Each new attempt incurs standard pricing. For applications in educational or professional contexts, failed verifications typically require contacting administrators who can delete the failed attempt and provide a new verification link.
Does Stripe Identity work with existing Stripe payment integrations?
Absolutely, integration is streamlined because Stripe Identity shares infrastructure with other Stripe products. Engineering teams save time because verification connects directly with existing Connect accounts, payment flows, and payout management.
What are the prohibited use cases for Stripe Identity?
Stripe prohibits reselling identity verification data, using it for FCRA-regulated purposes like credit or employment screening, verifying minors under 16, and verifying individuals in sanctioned jurisdictions including Cuba, Iran, North Korea, Syria, and certain Russian regions. Businesses must also not use Stripe Identity as a standalone service for prohibited business categories or for purposes violating their services terms.
Conclusion
Alex’s rental marketplace now thrives because Stripe Identity solved the fraud problem threatening to destroy everything he built. The 94 percent fraud reduction transformed unit economics making the business profitable while actually improving the legitimate user experience through verified trust signals.
Stripe Identity use cases span industries from peer-to-peer marketplaces to financial services to community platforms. The common thread is building genuine trust through verified identity enabling business models that would otherwise fail under fraud pressure or regulatory scrutiny.
Start by identifying your specific verification needs. Fraud prevention, age verification, regulatory compliance, and trust building each require slightly different implementations. Review Stripe’s documentation for your industry and country confirming eligibility before building integrations.
