One of the guiding principles for organisations, whether they are major corporations or small firms, is to ensure compliance. Enforcing compliance helps organisations to adhere to fraud prevention guidelines, identify rule infractions, and shield a corporation from unwarranted penalties and legal action. PAN verification is one such crucial process before onboarding consumers, clients, and third parties in order to remain compliant and within the law.
One of the most crucial papers in today’s world is the Permanent Account Number (PAN) card. This document, which was issued by the Income Tax Department, links all of a specific person’s or organization’s financial transactions in order to prevent tax evasion by both people and businesses. It functions similarly to an economic instrument that keeps track of all financial activities and keeps a thorough record for continuing and future compliance needs.
The PAN card, however, has many additional purposes besides only enabling the government to monitor a person’s or entity’s financial transactions. PAN Card is increasingly being used as proof of identity – even for Online Skill Gaming and Gambling, where it enables fraud prevention associated with Identity Fraud and Financial Crimes like Money Laundering or Terrorist Financing during Customer onboarding.
The following details would be on a typical PAN card issued to an individual:
- The First Name and the Last Name
- Date of Birth
- PAN Number
- Signature of the PAN holder
The details on a typical PAN card issued to a firm might be as follows:
- Company Name
- Date of Incorporation
- PAN Number
The Need for PAN Card Verification API for the Gaming Industry
The gaming industry has seen a significant increase in participation from players worldwide, especially in India, with the online gaming market volume projected to be Rs. 4 billion by 2027. With this growth comes a need for enhanced security measures, including player identity verification. The implementation of a PAN Card Verification API could be the solution that the gaming industry needs.
A survey conducted by the All India Gaming Federation (AIGF) in 2019 found that 79% of Indian players believe that safety and security are essential when playing online games. The same survey also revealed that 76% of players are willing to provide their PAN Card details for identity verification. This indicates that players value security and are open to the idea of sharing their PAN Card details to ensure safe gaming experiences.
Identity verification is crucial in the gaming industry, as fraudulent activities such as money laundering, identity theft, and fake accounts can occur. PAN Card Verification APIs can prevent these activities by verifying the identity of players through their PAN Card details. This can reduce the chances of fraud, making online gaming safer and more secure for players.
PAN Card Verification APIs also improve the player experience by reducing the time and effort required for identity verification. Players can easily provide their PAN Card details through the API, eliminating the need for manual verification, which can be time-consuming and cumbersome. This, in turn, can increase player engagement and retention.
Furthermore, studies have shown that the use of identity verification measures, such as PAN Card Verification APIs, can significantly reduce the incidence of problem gambling and underage gambling. According to a study conducted by the International Centre for Responsible Gaming (ICRG), mandatory identity verification processes reduced the number of problem gamblers by 20-30%.
The implementation of PAN Card Verification APIs can also ensure compliance with regulations, such as Know Your Customer (KYC) norms, Anti-Money Laundering (AML) laws, and the Prevention of Money Laundering Act (PMLA). By verifying the identity of players and preventing money laundering, gaming companies can comply with these regulations.
In conclusion, the gaming industry can benefit from the use of PAN Card Verification APIs to enhance security measures, improve the player experience, comply with regulations, and reduce the incidence of problems and underage gambling. The willingness of players to provide their PAN Card details for identity verification indicates that this solution can be implemented successfully in the gaming industry to provide a safe and secure environment for all players.
Try IDcentral’s Digital Onboarding solution with PAN Verification API
Sumanth Kumar is a Marketing Associate at IDcentral (A Subex Company). With hands-on experience with all of IDcentral’s KYC and Onboarding Technology, he loves to create indispensable digital content about the trends in User Onboarding across multiple industries.