Case Study: IPRoyal

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Gabija Stankevičiūtė
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  • IPRoyal is a global proxy service provider that offers businesses and individuals access to a residential proxy network. 
  • The Lithuania-based company specializes in IP networking and is well-equipped to serve different proxy needs. 

About IPRoyal

Many businesses choose the company’s services for web scraping purposes, while users choose its proxies to keep their identity, location, and other personal information safe online. 

IPRoyal’s proxies are multi-functional. The main goal is to ensure that users aren’t blocked or detected when browsing online.

IPRoyal provides sustainable, custom-tailored solutions, giving its customers a first-rate experience through cost-effective, reliable, and easy-to-use proxy services. 

The Challenges

IPRoyal continues to grow its global IP pool and concentrates on offering functionality through a wide range of proxies. For example, Its 4G Mobile proxies automatically rotate IP addresses to users that can utilize this type of proxy for anonymous competitor research, SEO optimization, or social media management. 

According to IPRoyal, the company welcomes at least 500 new entrants daily.

But the growing circle of customers who are interested in IPRoyal proxies comes with specific challenges. IPRoyal claims that maintaining such a complex system requires a lot of work and effort, not to mention accuracy and speed.

As claimed by IPRoyal, they needed to enhance their security system by implementing a user-friendly identity verification solution to ensure a secure yet frictionless customer onboarding:

“To maintain the safety of our network and avoid any possible harm to our infrastructure and other network users, we must ensure that every new user is identified before accessing our network,” says Karolis Toleikis, CEO of IPRoyal.

“We aimed to increase conversions while maintaining a frictionless customer onboarding journey, as IPRoyal’s customers expect a quick sign-up.”

At that time, IPRoyal thought of two possible scenarios to solve this issue: 

  • To build an in-house identity verification system and hire new employees specifically for remote KYC purposes. 
  • To use a trusted, third-party provider to take care of the complete ID verification process.

After realizing that such challenges would be solved easier by finding an ID verification provider, IPRoyal decided to give full administrative power to iDenfy’s KYC experts. 

The Solution

It was important for IPRoyal to work with a trusted ID verification provider to guarantee long-term collaboration.  Beyond the KYC requirements and the aim to stop fraud, IPRoyal had three factors in mind that would meet their team’s and customers’ expectations: efficient verification flow, powerful UX, and easy integration.

With the growing proxy user network, IPRoyal integrated iDenfy’s four-step verification to speed up the sign-up procedure for every proxy user who expected to receive a pain-free registration. 

iDenfy ticked all the boxes and fulfilled IPRoyal’s requirements. IPRoyal partnered with iDenfy in July 2022 with the hopes of creating a speedy and simple customer onboarding process. The company chose iDenfy as its ID verification provider to ensure a frictionless and secure onboarding experience. 

The Results

iDenfy’s identity verification plugin, powered by artificial intelligence and biometric authentication technology, simplifies operational difficulties. The automated process helps IPRoyal detect fake identities and restrict suspicious customers from accessing its proxy services. With iDenfy, IPRoyal successfully onboards more than 1 000 applicants a month.

Without iDenfy’s end-to-end ID verification solution, IPRoyal’s team might have had a more complicated user onboarding journey: 

If we had to do all this work on our own, it would require a new, in-house system, taking more time, focus, and costs away from our own products,” says Karolis Toleikis, CEO of IPRoyal.

Before iDenfy, IPRoyal thought of proceeding with a manual approach without implementing a third-party KYC solution:

  • The approximate calculations show that a single manual verification review would take their team at least five minutes to complete.
  • As a result, it would take IPRoyal 5 000 minutes per month or around 83 extra work hours directly unrelated to the company’s industry and services. 

Based on this equation, IPRoyal would have to hire at least two new employees as manual KYC specialists, which, according to IPRoyal, is additional costs due to taxes or insurance, not to mention additional resources for training. 

iDenfy verifies customers in under 60 seconds, helping IPRoyal achieve a 70% reduction in time to verify new users. Currently, iDenfy handles operational work for the proxy platform while significantly minimizing the chances of fraud. The AI-powered biometric verification increases conversions and helps IPRoyal grow its customer base.

“iDenfy helped us save valuable resources, and, more importantly, we know our identity verification process works as intended, offering a seamless experience for our clients and us.”

Karolis Toleikis, CEO of IPRoyal