PayPal has made frequent acquisitions in the past few weeks, all pointing to payments and retail. In May, PayPal acquired European mobile payment and financial services provider iZettle for US$2.2 billion in cash. At the end of May, it announced the acquisition of the artificial intelligence retail system Jetlore. In June, PayPal acquired the HyperWallet, an aggregation payment platform, for US$400 million.
According to Techcrunch, PayPal recently spent $120 million in cash to acquire Simutil, a fraud prevention start-up. This is the third acquisition of giant PayPal this month.
PayPal used to be a Simility investor and owned 3% of the company’s shares prior to the acquisition. The acquisition of Simility can help PayPal provide fraud prevention and risk management solutions to merchants around the world.
The acquisition is expected to close in Q3 2018, after which PayPal will begin integrating Simility into its own platform.
About 49 per cent of companies worldwide say they have experienced economic crime in the past two years, according to PWC’s 2018 global economic crime and fraud survey. As digital transactions become more sophisticated and common, online fraud involving both buyers and sellers (and even insiders) has become one of the biggest constraints on the growth of e-commerce.
“The acquisition of Simility activity, in the past 12 months with us Financial, iZettle, announced the acquisition of Swift Jetlore and Hyperwallet company’s activities, is to enhance our merchant services provided by the package, and ultimately provide one-stop solution for the global business activities.” PayPal COO and Bill Ready, senior vice President, noted in a blog post.
For PayPal, the acquisition of Simility is not only applicable to its own system, but also to customers who support transactions through PayPal at network, mobile and physical sales points.
Undoubtedly, this acquisition will allow PayPal to make full use of Simcil’s anti-fraud and risk management system to serve its 237 million customers around the world, and to create personalized anti-fraud tools tailored to the business characteristics of these merchants.
According to the commentary, PayPal is continuing its rapid development with mergers and acquisitions, introducing more modern tools to its 230 million global users.
Public information shows that Simility was founded in 2014 and is headquartered in Palo Alto. The company was founded by a group of engineers led by Rahul Pangam. Prior to that, he worked for 7 years in anti-fraud work at Google.
Simility Inc. is a provider of cloud solutions for fraud prevention software, providing a highly scalable, fraud-resistant cloud platform that uses a combination of machine learning and human intervention to protect businesses from sophisticated fraudulent transactions. Its mission is to prevent all kinds of fraudulent activities, such as account infringement, that is, the offender’s login to someone’s online account. In this situation, Simility observes the time period, device, and behavior characteristics that users are used to logging in and establishes a “normal” user login behavior profile. Once it is found, it will prevent the login behavior from happening.
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