PayPal is on a spending spree to acquire companies that can fill specific roles or market segments in PayPal.
Just a few days ago it purchased Hyperwallet and now PayPal announced the acquisition of Simility, a leading fraud prevention and risk management platform, for $120 million in cash.
The company said that the acquisition of Simility will enhance its ability to deliver fraud prevention and risk management solutions to merchants globally.
“Digital commerce has exploded, and fraudsters have taken note, adapting and developing new methods to carry out their crimes. PayPal has been at the forefront of developing innovative fraud prevention and risk management solutions for nearly 20 years, and now, merchants will be able to configure those solutions to manage the unique complexities of their businesses. Together with Simility, we will be able to put more control in the hands of our merchants to fight fraud while helping make commerce experiences faster and more secure.”
Bill Ready, chief operating officer, PayPal
Once PayPal completes the transaction, which they state should be by the third quarter of this year, sellers on the PayPal platform will gain access to best-in-class fraud tools that can be customized to reflect the nuances of their businesses through their existing account management dashboard.
These machine learning-powered tools, which dynamically adapt and evolve with each transaction, will enhance payment experiences for merchants and their customers by helping to reduce fraudulent payment activity and, in some cases, verifying transactions that may have otherwise failed.
“Our vision for Simility was to create an adaptive risk management platform that empowers organizations operating in a digital world to manage an evolving fraud and risk landscape. We are excited to enter the next phase of our growth with PayPal and are thrilled to join them to help drive the next generation of payment and commerce solutions while scaling our business together.”
Rahul Pangam, co-founder and CEO, Simility
On the surface, this one looks a bit like an odd acquisition considering PayPal has always been very good at fraud prevention services.
But it appears Simility is able to bring AI-powered tools that can be tuned by a merchant to PayPal, which is a flexibility that PayPal didn’t provide before.
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