Global financial technology firm Stripe announced that it has bought a card authentication tech company Bouncer. Stripe acquired Bouncer, for an undisclosed amount, to minimize online transaction fraud.
The Technology and team of Y Combinator alum Bouncer will join fintech in order to enhance the abilities of Radar – a machine learning-based fraud prevention tool of Stripe.
Bouncer is a Brooklyn-based fintech firm that has created a platform that automatically runs card authentications as well as detects fraud in online transactions based on cards.
Stripe-Bouncer acquisition details
Through this acquisition, Stripe said in a press release that it will merge the team of Bouncer with its own and help grow the capabilities of Radar. According to the release, Stripe’s fully integrated fraud prevention tool Radar will help identify transactions as high-risk.
It will now utilize the technology of Bouncer for card scanning and verification in order to authenticate whether a customer has a legitimate card at the time of purchase.
This, Stripe says, will add an extra layer of security and protection for customers and reduce false positives in potentially high-risk transactions.
Stripe Radar Business Lead, Simon Arscott says Bouncer is a great tool for modern online businesses. It will allow businesses to identify stolen cards while making sure only legitimate customers transact without being blocked. The US-based fintech is thrilled to get the Bouncer team on board. It will bring their experience of building payment authentication solutions for businesses to Stripe, enabling the technology to be helpful for Radar, he adds.
By adding advanced card scanning technology, Stripe Radar will block more fraud and increase revenue for millions of online businesses worldwide that rely on Stripe, he further adds.
About Y Combinator alum Bouncer
When a transaction is marked as high risk, instead of blocking the purchase altogether, businesses can use Bouncer for verifying that the card is being used legitimately. Bouncer is able to do so by asking for live pictures of the card which can be taken on their smartphones.
Bouncer also performs risk assessment in less than 400 milliseconds in order to validate the card. If the card is real, traction will be approved and if the card is stolen, purchase will be rejected.
The entire process takes less than a second and provides a smooth experience for true customers and defends profoundly against fraudsters. Data handling by Bouncer is compliant with GDPR and PCI.
Bouncer CEO, Will Megson says that the company is excited that it will be able to scale its advanced card verification capabilities to Stripe’s network, help businesses grow and further reduce fraud. Megson adds that they couldn’t be more excited to be a part of Radar’s team.
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Image Courtesy: Stripe Newsroom