Zumigo, an identity provider, is expanding the reach of its mobile location verification service to online merchants.

With the Zumigo Payments product, Zumigo works with telcos around the world, leveraging their mobile network data to match whether the name and phone number being given on the online checkout page matches the mobile device that is near the PC or laptop.

"Merchants are impacted by 133 successful fraudulent transactions per month, which is about 0.7% of their revenue in 2013," said Chirag Bakshi, founder and CEO of Zumigo, citing a 2014 LexisNexis report.

Merchants integrate Zumigo's code into their checkout page and then, when a consumer comes to the page, the code picks up the Wi-Fi network the computer is using or the IP address. The code is configurable so merchants can decide how far away the consumer's phone can be from the purchasing location.

"But it's pretty typical to have the phone with you all the time," Bakshi said.

Zumgio's verification of name and address, matched with the information from the mobile device, launched in the spring last year for account openings only, Bakshi said.

Zumigo is launching the expanded Zumigo Payments with Equifax. Once it checks the information both with the credit bureau and its telco partners, Zumigo gives merchants a risk score. Since its launch in 2011, Zumigo has built relationships with 330 mobile carriers across 150 countries.

The company takes a fixed fee of a few pennies per transaction that it verifies whether that transaction is accepted or declined by the merchant based on the score. Zumigo shares some of that revenue with its telco partners. 

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