Compliant Private Payments: How Purple Pay Leverages PolygonID for Secure and Private KYB/KYC Verification
Purple Pay, a decentralized identity-backed payment solution, allows merchants and web3 dApps to start accepting cryptocurrency payments.
In this post, we’ll explore how Purple Pay utilizes Polygon ID and its unique approach to KYB through credential verification to take the payment experience to the next level.
What is PurplePay building?
PurplePay allows merchants and individuals to receive crypto payments in a compliant manner.
With regulation increasingly entering web3, it is important for dApps across blockchain ecosystems to ensure compliance with regulators. Purple Pay allows dApps to future-proof their business by managing both their compliance (KYC, KYB, and AML) and transaction flows.
Our provided payment rails (APIs) can be integrated directly into merchants’ websites, allowing customers to scan and pay using their decentralized wallet. This is done in a secure, cheap, fast, self-custodial, and, most importantly, KYC-compliant way without disclosing user information.
To achieve this, PurplePay has leveraged the power of Polygon ID, an infrastructure that allows issuers, customers, and verifiers to interact securely and privately.
So, how does it work?
First, the merchant uploads all their details to PurplePay. This data is then sent to an Issuer, such as IDfy, which performs its KYB checks.
On successful verification, the Issuer provides verifiable credentials to be scanned by the merchant into their PolygonID mobile app. These are returned to PurplePay as a QR code to allow merchants to verify KYB credentials.
Merchants can also reuse their verifiable credentials across any other application using PurplePay
This is where the power of Polygon ID truly comes in. The verification becomes a digital passport that can be used for further transactions or interactions that acknowledge PolygonID without redoing the process. It’s a secure, decentralized way of verifying identities without disclosing sensitive user information.
Here is an end-to-end demo of PurplePay integration with PolygonID:
What’s the Larger Picture?
This is just the beginning! Purple Pay’s next KYC offering will allow consumers of partner merchants to create a unique PurpleID that will allow for shared compliance. Consumers can leverage PurpleID, which will be used across dApps and blockchain ecosystems, allowing for a more compliant ecosystem.
Our unique solution built on top of Polygon ID will make merchants and individuals transacting across dApps compliant without compromising on web3 principles of privacy and pseudonymity.
We believe this will not just transform client experiences but also give comfort to new entrants, who can now start accepting crypto payments knowing they’re working with a compliant payment provider.
At a macro level, identity-backed payments allow the entire space to be looked at beyond the horizons of money laundering, tax evasion, and speculation, by forging the path to mass adoption by allowing for regulatory clarity and institutional money to flow into the space.
