Prove Identity Secures $40 Million in Funding to Expand Digital Identity Verification and Authentication Solutions

Prove Identity, a late-stage startup with origins in the e-commerce mobile payments sector, has closed a $40 million funding round aimed at furthering its strategic shift to the digital identity verification and authentication market. The New York-based company, previously known as Payfone, has rebranded itself as an enterprise vendor specializing in providing secure and seamless identity verification solutions for industries such as banking, retail, and healthcare. This recent funding round was led by MassMutual Ventures and Capital One Ventures, demonstrating the confidence investors have in Prove Identity’s technology and its potential to revolutionize identity verification processes.

Funding and growth

Having raised more than $215 million to date, Prove Identity is well-positioned to continue its growth in the digital identity verification market. The latest investment will be utilized to launch new commerce enablement and fraud-fighting use cases, devising innovative solutions for businesses in need of robust identity verification measures. Prove Identity’s ongoing global year-over-year growth serves as a testament to the increasing demand for reliable identity verification and authentication technologies.

Identity Verification and Authentication Platform

Prove Identity’s smartphone-based identity verification technology forms the core of its platform. With an emphasis on creating frictionless consumer experiences, Prove Identity ensures that security standards are not compromised in the process. The platform enables businesses to seamlessly verify identities, making use of the nearly ubiquitous possession of a mobile phone. This technology can be applied across multiple channels, including mobile, desktop, and even in-store.

The ID verification and authentication platform offered by Prove Identity has delivered remarkable results. Businesses utilizing this technology have experienced up to a 79% faster onboarding process, a 35% reduction in abandonment rates, and an impressive 75% reduction in fraud attacks. These outcomes support Prove Identity’s claim of providing a secure and efficient solution to identity verification and authentication challenges.

Unique approach: Mobile phone-based verification

One of the standout features of Prove Identity’s technology lies in its use of mobile phones for identity verification. Leveraging a device that most adults already possess, Prove Identity offers an easily accessible and secure means of verifying identities. This approach greatly simplifies the verification process and enhances the user experience. Whether it’s through a mobile application, a desktop website, or even in-store scenarios, Prove Identity’s technology ensures seamless and reliable identity verification.

Customer base

Prove Identity has amassed an impressive clientele, with nine out of the top ten American banks, major global cryptocurrency exchanges, and numerous US retailers among its customers. This breadth of clients highlights the trust placed in Prove Identity’s technology by some of the leading players in the financial and retail sectors. The company’s solutions have become integral components of their identity verification processes, underscoring the effectiveness and reliability of Prove Identity’s platform.

Future plans

With the infusion of $40 million in funding, Prove Identity is well-positioned to expand its commerce enablement and fraud-fighting use cases. The company aims to further refine its technology and develop innovative solutions to combat identity fraud and streamline commerce in various industries. By leveraging its expertise in identity verification and authentication, Prove Identity aims to foster secure and frictionless consumer experiences, transforming how banks, retailers, and healthcare institutions verify and authenticate identities.

Prove Identity’s successful $40 million funding round signifies a major milestone in the company’s journey as it pivots into the digital identity verification and authentication market. With its innovative smartphone-based identity verification technology, Prove Identity offers businesses the means to deliver seamless customer experiences while maintaining robust security standards. The company’s impressive customer base, including prominent banks, cryptocurrency exchanges, and retailers, further strengthens its standing in the market. Prove Identity’s commitment to innovation and its focus on enhancing identity verification processes make it a key player in shaping the future of secure digital commerce.

Explore more

Align CX and Marketing to Drive Business Growth

Introduction The most compelling marketing campaign can be instantly undone by a single poor customer service interaction, revealing a critical disconnect at the heart of many modern businesses. While marketing teams work to build a brand promise, customer experience (CX) teams deal with the reality of that promise every day. This gap between expectation and reality can erode trust and

Trend Analysis: AI-Powered Feedback Analysis

The modern marketplace generates a relentless torrent of customer feedback, a valuable resource that paradoxically drowns most organizations in a sea of unstructured data they cannot navigate. From survey responses and support tickets to app store reviews and social media comments, this flood of qualitative information holds the key to customer satisfaction, yet its sheer volume makes manual analysis an

How Customer Experience Builds Brand Equity

The long-held belief that brand value is forged primarily through clever advertising and massive media spend is rapidly becoming obsolete in a marketplace where consumers hold the ultimate power. Today, a brand’s most significant asset is not what it says about itself, but what customers feel when they interact with it. The sum of these feelings—the customer experience (CX)—has emerged

AI Will Drive CX in 2026, But Trust Will Win Customers

The Dawn of a New CX Era Where Technology Meets Trust As we accelerate toward 2026, the landscape of customer experience is undergoing a seismic shift, driven by the relentless advancement of Artificial Intelligence. AI is no longer a futuristic concept but a foundational element of modern business, set to automate processes, predict needs, and personalize interactions on an unprecedented

How to Create a Standout Online Customer Experience

Despite the increasing sophistication of digital commerce, the overall quality of customer experience in the United States has been trending downward, a concerning development for businesses that rely on digital channels for growth and retention. Recent data indicates a significant disparity, with far more brands experiencing a decline in their customer experience rankings than those seeing improvements. This erosion touches