Nexera ID and cheqd are pioneering a new standard for customer acquisition and digital onboarding, with reusable KYC credentials.
The next evolution of digital identity
Nexera ID and cheqd have partnered to create a new standard for data exchange and for customer acquisition. Through this partnership, the objective is to streamline and expedite the way your customers interact with your platform, establishing seamless, secure and lower cost onboarding and a far more personalised customer experience, using digital credentials.
Using “customer-controlled” credentials, combining the technical infrastructure of cheqd and the customer management system of Nexera ID, this partnership is future proofing platforms for the next stage of digital identity and data exchange. This type of “user-centric” customer relationship will take centre stage in a new era of digital identity, across Web 2.0 and Web 3.0 applications.
Benefits for your customer and your application
If you are looking to simplify your customer onboarding processes, the Nexera ID and cheqd partnership is a game-changer. By adopting this user-centric approach, customer applications can empower their users by putting them in control of their digital identities, ensuring both security and privacy. A major innovation within this collaboration is the introduction of reusable KYC, which not only accelerates onboarding but also enhances data security.
For customer applications, this collaboration offers an opportunity to:
- Significantly reduce the costs, time, and effort involved in onboarding new customers.
- Creates a more personalised customer journey, resulting in increased customer satisfaction and loyalty.
- Generate a new, recurring revenue stream for giving the customer control of their data.
In essence, it’s a win-win situation for both end-customers and businesses seeking to enhance their digital identity and data exchange processes. Not only is it an improvement to the existing paradigm for KYC, but the approach also directly conforms with the upcoming eIDAS 2.0 regulation in Europe, making it the future of data exchange and customer acquisition.
Infrastructure from cheqd. Customer Management System from Nexera.
Nexera ID and cheqd complement each other technically to provide a complete identity issuance and verification stack for your business. While cheqd is dedicated to network infrastructure and credential issuance and monetisation tooling, Nexera ID stands at the forefront of innovation with its dual-capability customer management system, seamlessly integrating both off-chain and on-chain credential verification. This unique approach, particularly our on-chain verification process, represents a significant USP, as it is an industry-first in providing a smooth and seamless user experience. By bridging the gap between traditional and blockchain-based systems, Nexera ID not only enhances security and efficiency but also pioneers a new standard in customer management and credential verification, unmatched by any other in the market.. The distinct expertise of each company comes together to create a full end-to-end flow for enterprises.
Using cheqd’s tooling, you can issue, revoke and monetise any type of credential with a simple integration into your existing application. This will improve your users’ experience as they will have a reusable copy of their data. It will also provide issuers of credentials with a way to monetise this data, incentivising more credentials to be issued into circulation. Nexera ID’s advanced customer management system, equipped with a powerful and flexible rules engine, revolutionizes the way institutions interact with decentralized finance (DeFi) and Central Bank Digital Currencies (CBDCs). This system not only allows for the verification of credentials issued by cheqd, but also enables the addition of custom properties, restrictions, and triggers to enhance security and monitoring both on-chain and off-chain. By enforcing on-chain rules, Nexera ID ensures heightened security and real-time oversight, laying the groundwork for a compliant DeFi ecosystem that appeals to institutional investors. Furthermore, its innovative approach is the foundation for an automated, embedded on-chain monitoring system, which operates within the boundaries of user privacy, making it an ideal foundation for CBDC implementations. This combination of features makes Nexera ID an indispensable tool for institutions seeking to leverage DeFi and CBDCs while adhering to regulatory compliance and maintaining user privacy.
Addressing multiple market challenges
This partnership will establish an end-to-end solution for enterprises to issue and monetise KYC credentials, and utilise them for onboarding to third party services.
This can solve existing problems in a range of different industry verticals, and for a number of use cases, including:
- Reducing the cost of KYC: KYC data is currently prohibitively expensive, costing between $2 and $10 per customer. This makes customer verifications challenging for the business models of many industries. Through relying on reusable KYC, this cost can be reduced tenfold, opening up customer verification to a range of new industry verticals, including eCommerce, ticketing, Web3.
- Meeting Compliance Requirements: Reusable KYC credentials help companies achieve compliance for both the FATF Travel Rule and emerging eIDAS 2.0 regulations, without the onerous costs of traditional KYC.
- Solving unclear business models for data exchange: Many federated identity/data exchanges struggle to generate revenue because there is no transactional cost associated with the release of customer data. Using cheqd’s credential payments, credential issuers can receive recurring revenue whenever a credential status is verified.
- On-Chain Credential Verification Innovation: Nexera ID sets a new standard with its unique on-chain credential verification, enhancing security and user experience, a first in the industry.
- Automated Compliance for DeFi and CBDC: Nexera ID’s rules engine enables automated compliance and monitoring, ideal for DeFi platforms and CBDCs, ensuring regulatory adherence while maintaining user privacy.
- Customizable Security with Dual Integration: Nexera ID offers tailored security through its flexible rules engine, supporting both off-chain and on-chain enhancements for diverse industry needs.
Through centering our efforts on resolving major customer problems (high costs, and compliance), and introducing a compelling commercial model as a solution (credential payments), we are creating a “low-risk; high-reward” product for our customers through this partnership.
Going further into the technology
The partnership will explore using Nexera ID’s rules engine and zero-knowledge proof capability to “wrap” and “transform” credentials issued on the cheqd network into specified proofs required for onboarding to particular organisations, jurisdictions, ecosystems and industries. For example, this can be used for proving a user is over the age of 18, or is not a resident of a particular jurisdiction.
“Nexera ID’s rules engine stands as a testament to innovation in the realm of on-chain compliance. At cheqd, we recognize the pivotal role it plays in simplifying the deployment and maintenance of verification rules. The synergy between Nexera ID’s rules engine and our commitment to creating seamless user onboarding and engagement experiences is unparalleled. Together, we empower organisations to navigate the dynamic landscape of digital identity effortlessly, ensuring compliance is not just a mandate but a seamless part of the user journey.” says Fraser Edwards, CEO and Co-Founder at cheqd.
Moreover, cheqd and Nexera ID will explore how the rules engine can be used in combination with cheqd’s Credential Payments model. This opens up an avenue for a strategic and co-operative approach to getting enterprises to adopt digital credentials, with a clear regulatory and commercial model. This partnership will also complement the existing cheqd x FinClusive x Verida partnership, enabling KYC/KYB credentials issued from FinClusive to the Verida wallet to interact with Nexera ID’s rules engine and verification interface.
“It’s been a fantastic journey partnering with cheqd. Their suite of identity tooling and credential payments model is a game changer for incentivising the adoption and consumption of credentials. With our existing NexeraID suite, PolygonID functionality for ZKPs, and the addition of cheqd for issuance and monetisation, we can provide an end-to-end compliance solution which is technically innovative, commercially sustainable and privacy-preserving.” says Rachid Ajaja, CEO of Nexera ID.
AllianceBlock and cheqd Partnership Network
Both Nexera ID and cheqd have significant industry reach, namely the AllianceBlock ecosystem and the cheqd partnership network. Each company will explore how to offer a complete end-to-end onboarding solution to relevant companies within these ecosystems to maximise reach of a combined digital credential solution.
The collaboration between Nexera ID and cheqd marks the beginning of a fresh era in secure, user-focused digital credentials, providing innovative solutions for both businesses and individuals on a global scale. This partnership is actively promoting the widespread acceptance of self-sovereign identity and championing the advancement of digital privacy.
