An American company PayPal Holdings is used for online payments from all over the world and in order to prevent fraud and risk to its merchants, Paypal has announced on 22nd June, that it has agreed to acquire Simility which sells technology to help online merchants spot fraudsters and is a leading fraud prevention and risk management platform. Paypal has decided to obtain Fraud Prevention Company Similarity at the cost of $120 Million in cash.
Apart from this, PayPal’s ability would be increased to deliver fraud prevention and risk management solutions to merchants from across the globe with the purchase of Similarity . it is a California based company that sells machine-learning-based technology to help online merchants spot defrauders and improve risk management.
Fraud Prevention Company Simility PayPal plans to make Simility’s services available to its merchants following the close of the transaction, that is expected by the end of the third quarter, it further said.
Bill Ready who is the company’s chief operating officer said in an interview that The purchase of Simility emphasizes PayPal’s broader aspiration to offer small online merchants, the same capabilities of bigger e-commerce providers. And Ready added that they are buying a company SImility that provides amazing tools which merchants can use on their own. For example, merchants will be able to use Simility’s technology to adjust their fraud controls based on what kind of products they sell.
In over a month Paypal has announced the fourth deal of purchase, as it continues to aggressively expand its business beyond just online payment processing. PayPal has attempted to transform itself through partnerships and purchase from mostly processing online transactions for its parent company to offering a suite of digital financial services, Since separating from online marketplace eBay in 2015,
These range from lending to small businesses to facilitating money transfers between merchants and customers.
According to a report, it had agreed to acquire Swedish payments company iZettle for $2.2 billion in its largest-ever acquisition In May
in this week, the Paypal company also announced an agreement to purchase Hyperwallet Systems which is a company that helps online individual and small business sellers accept payments, while The Paypal company also disclosed plans to acquire prediction platform Jetloreearlier in this month.
And the Paypal deal’s with the Simility as the threat of fraud for e-commerce companies continues to hike, as more business moves online and fraudsters refine their techniques. According to a study by credit bureau Experian,The rate of e-commerce fraud in the United States is inceased more than 30 percent in 2017 from a year earlier.
further, he added that the Simility’s services will benefit from the ability to draw upon PayPal’s extensive data set on fraud
and Reday further added that they have one of the largest data sets about how online fraud happens.