Payments business PayPal is bolstering its fraud prevention & risk management capabilities by buying Simility.
The FinTech will buy the fraud prevention and risk management platform in a deal worth $120m. Last year, Simility closed a $17.5m Series B financing round. The round was led by existing investor Accel Partners, along with participation from PayPal, The Valley Fund and Trinity Ventures.
Bill Ready, COO and EVP, PayPal said: “We invested in Simility last year because we believe the company has a unique approach that goes beyond legacy, static rule-based fraud and risk offerings and puts control in merchants’ hands to offer increased protection in a mobile world.
“With Simility’s capabilities and talent, we will accelerate our ability to provide merchants with transparency and control to manage the unique complexities of their businesses while improving fraud prevention.”
Following the close of the deal, merchants on the PayPal platform will gain access to fraud tools that can be customised through their existing account management dashboard.
PayPal will begin integration efforts with Simility at the close of the acquisition, which is expected in the third quarter of 2018. Once the acquisition closes, Simility CEO Rahul Pangam and the Simility team will report to VP of Enterprise Services Platforms Tushar Shah. The payments company will also gain an office in Hyderabad, India, enhancing it’s presence in the market.
Founded in 2014, Simility helps companies prevent fraud and abuse in real time with machine learning, big data analytics and data visualisation capabilities. It currently caters to customers in financial services, retail, banks, e-commerce and FinTech sectors.
It provides adaptive fraud detection, which learns and evolves, preventing frauds in real-time. Simility claims its PCI DSS and SOC 2 Type II certification, data isolation, data security (both in-transit and rest), and others provides the ‘highest level of security in the industry’.
Copyright © 2018 RegTech Analyst
Copyright © 2018 RegTech Analyst
