$19 million raised by Signifyd to protect online fraud protection

0
94

Signifyd has permanently altered the course of fraud detection industry with a guarantee. The San Jose California-based startup has managed to raise $19 million to protect online merchants from fraud transactions. The investors include Menlo Ventures, American Express Ventures, and Triple Point Capital. The total funding received by Signifyd is around $31 million till date. Previously, Signifyd has raised around $30 million from various investors like Andreessen Horowitz and Data Collective.

 

The concept of Signifyd

 

The concept behind Signifyd is really simple. Merchants online have to spend a lot of money on chargebacks as demanded by the credit card companies. These act as a reimbursement for fraudulent charges. Hence Signifyd was created to help online merchants save a lot of money. This assesses the transaction risk before the card is processed.

 

The company has created a new risk assessment technology which is designed to leverage the data of the web. This platform protects a lot of e-commerce websites today. As of today, more than 3000 e-commerce companies depend on Signifyd to eliminate frauds to make transactions. Many online e-commerce businesses do not have the resources to screen such a risk before a transaction takes place. Hence the Signifyd’s financial guarantee has helped them secure clients from Lacoste, Jet.com, and Peet’s coffee. If anything goes wrong Signifyd says it has learned machine learning capabilities which make them feel confident when reimbursing the merchant.

 

The company uses thousands of data points before making a decision. If the company makes a mistake, they pay for it. In a normal scenario, the e-commerce firm has to charge 1% of transaction revenue to the customers which affect their margins. But with Signifyd, the merchants see a huge increase in margins. Overall, 3-5% of the goods revenue is declined by the merchants when they are not able to assess accurately if the purchase is fraud.

 

The MD at Menlo Ventures, Pravin Vazirani said that they have been investors for many e-commerce companies and they realize how big a problem this can be. Signifyd is a one-minute product, unlike other alternatives which are available in the market. Other solutions provide the score through with a human expertise is required to decide if the transaction is fraud or not.

 

With Signifyd, for the first time merchants of any scale can benefit from the service. They can receive 100% financial guarantee along with technology and behavioral analytics expertise of the company.

 

What makes Signifyd unique?

 

There are alternatives with no guarantee. The ability of the company to give a financial guarantee on a large scale and thousands of customers is what makes Signifyd unique. The company has not only set a strong foot in the industry but it will also change the way insurance companies think.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.