Payments giant Stripe has announced the acquisition of Bouncer to help with fraud prevention. The company has been on an acquisition path of late, buying startups to expand its business further. In October last year, the company acquired Nigerian payments startup Paystack for $200 million and plans on dominating Africa’s e-commerce with Paystack.
Bouncer is based in Oakland and through its platform, fraud can be prevented and detected. The platform runs card authentications automatically, and detects fraud in card-based online transactions.
Stripe has not disclosed the terms of the deal but has announced that it is acquiring both Bouncer’s technology and team, and will be integrated with Stripe’s Radar. Radar is Stripe’s fraud AI and Machine Learning-based fraud detection tool. “Bounce’s card scanning and risk technology is used to help online businesses reduce fraud and authenticate cards. Bouncer will be integrated into Stripe’s Radar, a fraud prevention tool whose machine learning models are trained on purchases made at millions of companies around the world every day”, Stripe posted on its newsroom blog.
The CEO of Bouncer; Will Megson announced the news with excitement. “I’m excited that we’ll be able to scale our advanced card-verification technology across the Stripe network to help businesses grow their revenue while further reducing fraud behind the scenes”, he said. He also mentioned that Bouncer’s integration with Radar will increase Bouncer’s effectiveness and make it more useful. “The same signals that Radar learns will make Bouncer more effective, and Bouncer will, in turn, make Radar more effective. We couldn’t be more excited to join the Radar team”, he said.
Simon Arcott, Business Lead for Stripe’s Radar didn’t hesitate to talk about how Bouncer would go a long way in setting up a high fence against fraud. He also mentioned that the integration of Radar and Bouncer was one of the best ideas and decisions Stripe has ever made. “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”, he said.