Payments juggernaut Stripe has acquired card authentication technology company Bouncer for an undisclosed amount.
California-based Bouncer markets card scanning and risk technology that helps online companies reduce fraud and authenticate their cards during transactions.
According to Stripe, Bouncer’s team and technology will join Stripe to boost the capabilities of Stripe Radar – a machine-learning-based fraud prevention tool marketed by Stripe.
Stripe claims that Stripe Radar’s machine learning models are trained on purchases made at millions of companies around the world every day and is fully integrated into Stripe’s payments platform.
When Radar identifies a certain transaction to be high risk, it will use Bouncer’s card scanning and verification platform to confirm that an end-user is using a legitimate card at the time of purchase. This, Stripe remarked, will help cut the number of false positives among transactions that are potentially high risk.
Stripe Radar business lead Simon Arscott said, “Bouncer is a great tool for modern internet businesses. It allows them to quickly identify stolen cards, while also ensuring legitimate customers can transact without being blocked.
“We’re thrilled to welcome the Bouncer team, and their years of experience building payment authentication software for businesses, to Stripe and to enable their technology for Radar users. With the addition of advanced card scanning capabilities, Stripe Radar will be able to block more fraud and further increase revenue for millions of businesses around the world who rely on Stripe.”
In April this year, Stripe entered into an agreement to purchase sales tax software enterprise TaxJar to improve tax compliance rates for internet firms.
The company also recently raised a new $600m funding round that values the company at $95bn, nearly tripling from $36bn since April 2020. This makes Stripe the second most valuable private fintech company, behind Ant Financial, which is valued at $150bn.
Copyright © 2021 RegTech Analyst
Copyright © 2018 RegTech Analyst