Nuggets Pitches Biometric App to Help Prevent Delivery Fraud

Nuggets is leveraging its payment and identity verification platform to ensure that packages reach their intended recipients. The company notes that e-commerce has gone up dramatically during the COVID-19 pandemic, which has forced consumers to do their shopping online instead of in brick-and-mortar stores.

The problem is that many purchases are not making it to the buyer, leading to a dramatic increase in chargebacks. According to Nuggets, the cost of failed deliveries in the UK is currently estimated to be somewhere around £1.6 billion.

Much of that has to do with changes to the delivery process. While companies like DHL and UPS have traditionally asked people to sign for packages, many organizations have relaxed those restrictions to support social distancing requirements during the pandemic. Unfortunately, they have not yet replaced signatures with a new proof-of-delivery method.

Nuggets is trying to use its app to fill that void without risking the safety of delivery drivers or recipients. With the new system, drivers will be able to use the app to send a step-up request to the recipient when they arrive with a delivery. The recipient will then use the app’s biometric authentication features to confirm their identity and answer the request. The procedure does not require any face-to-face interaction, and provides retailers with valid proof of delivery when safety demands that packages be left on someone’s doorstep.

“Merchants are so overstretched with increased orders, staffing issues, and supply chain fulfilment problems that having to dispute chargebacks ends up at the bottom of the list,” said Nuggets Co-Founder and CEO Alastair Johnson. “By having Nuggets integrated, merchants can better manage their chargebacks from COVID-19 and start safeguarding their revenues.”

The Nuggets app is available for iOS and Android devices, and utilizes Onfido’s biometric technology to authenticate its users. Retailers can integrate the app into an existing platform to secure their checkout and payment process and prevent fraud.

Nuggets’ blockchain-based identity solution has previously been deployed to protect Latpay’s payment system.

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May 28, 2020 – by Eric Weiss