VAPO, New Zealand's largest specialist retailer of vaping products, provide locally made e-liquid and products from around the globe to serve kiwi’s looking to switch to a healthier alternative from cigarette smoking. With 21 stores nationwide and operations since 2016, they’ve become the most reputable supplier in the New Zealand market.
VAPO were looking for an identity verification provider to prove that customers purchasing vapes from their website are 18 years of age and legally allowed to do so; and therefore, make their online sales approach more robust in meeting and exceeding regulations.
Although not a legal requirement to use an identification software which requires your customers to upload a photo form of ID as proof of age - you’ll see many vaping companies which simply have a "tick if you’re over the age of 18", certainly a weaker method of age verification which can make companies vulnerable to being duped into illegal underage sales and at risk of facing up to $10,000 fines; or prohibited from selling vaping or tobacco products for three months.
VAPO wanted to secure knowledge that their customers are of legal age to purchase their products and eliminate the risk of fraudulent underage sales.
Ben Pryor, Director of VAPO commented;
"We not only wanted to comply with local regulations, we wanted to act responsibly. We have always set the bar high for quality standards of vaping products and we believe this holds true for our attitude toward upholding a high level of social responsibility as a vaping company."
That’s where we came in. Cloudcheck was able to provide an age verification system with a unique API, that has been referred to as "an IT professionals API dream" for its easy install and seamless integration, and at a competitive price. Allowing VAPO to ensure they knew legally, exactly how old their customers were and would also have proof of verification should they be audited.
VAPO joined Cloudcheck in May 2020 and were ahead of the curve. With restriction on sales of vaping products to be pushed in line with that of tobacco regulations, under "Prohibition on sale to minors Act" 5 months later, on the 11th of November 2020. The risks on business can be high, and VAPO ruled this potential risks out with Cloudcheck.
''The flexibility of the Cloudcheck implementation allows us to seamlessly customise and scale our age verification systems alongside the further enhancement and expansion of our company.''
Soon to be expanding into the Australian market, it was crucial for VAPO to choose a provider that operated in both New Zealand and Australia to ensure they were able to verify the age of their Australian customers to the same robust level.
At Cloudcheck we provide access to Australian & NZ Government data sources and a multitude of other countries. This meant we were able to help VAPO with their expansion through one simple integration and ensure their Australian customers were also complying to the same secure standard of regulations they wanted when proving their age prior to purchase.
We created a tailored package for VAPO, which would allow them to verify their customers age instantaneously, at a reasonable cost, with little impact to their user journey and customer onboarding.
At Cloudcheck, we create diverse verification systems that work not only in the AML & CFT compliance space, but a variety of industries which are required to KYC, and a need to verify their customers securely and efficiently. Whether it’s age verification in e-sports, gaming sites, or alcohol sales, to professional services looking to verify customers via their bank account.