The collaboration will allow platforms to make informed fraud prevention decisions and secure every point of the user journey
MangoPay, a European payment technology provider for marketplaces and platforms, has announced the acquisition of the AI fraud detection and prevention company Nethone.
Their joint solution will provide platforms with a complete end-to-end service to handle their specific payment and fraud prevention needs. Nethone’s proprietary ML system collects behavioural data, using hardware, software, network intelligence, and behavioural biometrics to identify potentially fraudulent activities.
It will enhance MangoPay’s payment authentication and seller onboarding capabilities with deeper KYC intelligence. Meanwhile, marketplaces can offer both their buyers and sellers a frictionless experience.
The new service is fully integrated and customizable, covering all the marketplace processes from the acquisition of new users to registration and login, transactions and disputes, without added friction.
The firms claim that the proprietary AI technology will prevent over 95% of account takeovers. Moreover, reducing fake accounts, fraud rates, chargebacks and unauthorised transactions should increase conversion rates by 9% and approval rates by 26%. In addition, the solution is able to reduce false declines due to suspected fraud, and manually-reviewed traffic by 60%.
Mangopay and Nethone’s collaboration already allows platforms to improve conversion rates due to the optimization of pay-in transaction scoring, better 3DS2 exemption management and ID check validation.
Despite the acquisition, Nethone will continue to serve businesses worldwide as a standalone company.