Mangopay buys Nethone and boosts anti-fraud solutions for marketplaces

Mangopay recently acquired AI fraud detection and prevention company Nethone to develop and offer anti-fraud solutions designed specifically for marketplaces.

Given the increase in online fraud rates, this solution will allow marketplaces such as Wallapop, Vinted or MissCar, along with other platforms, to transform the threats and challenges posed by malicious activity into accurate and profitable business decisions.

Marketplaces represent more than 66% of global transactions e-commerce, making them a prime target for fraudsters. As third-party intermediaries, the platforms are even more vulnerable to fraud than classic digital commerce.

For better detection and prevention of threats in real time, As well as predicting future patterns of increasingly sophisticated malicious activity, platforms need enhanced security features with more data-focused capabilities. Mangopay and Nethone have created the market’s first fraud prevention solution built specifically for platforms and marketplaces.

Based on Nethone’s current use cases, this solution:

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  • It will allow the platforms operate in a secure environmentpreventing more than 95% of account theft (ATOs), reducing fake accounts, fraud rates, chargebacks and unauthorized transactions.
  • You’ll support business growth by unlocking upsell potential, increasing conversion rates by 9% and approval rates by 26%, as well as reducing false rejections due to potential fraud.
  • It will allow you to build a operationally efficient platform and scalable by reducing manually reviewed traffic by 60% through automation.

Transform threats into accurate and profitable business decisions

Nethone’s proprietary solution, based on machine learning, incorporates the collection of behavioral data, hardware, software and network intelligence, as well as behavioral biometrics to enable platforms to make informed decisions and secure every point of the user journey, both on mobile and desktop.

With a wide range of mobile-specific attributes analysed, this is a highly accurate solution for identifying fraudulent activity within the growing number of transactions carried out on mobile devices.

Improving Mangopay’s payment authentication and merchant onboarding capabilities with deeper intelligence from «Know Your User” protects marketplaces from sophisticated fraud and abuse, while giving their buyers and sellers a frictionless experience. The collaboration between Mangopay and Nethone already enables the platforms to improve conversion rates by optimizing payment transaction scoring, better handling of 3DS2 exemptions, and validation of identity checks.

Knowledge of users in real time

Romain Mazeries, CEO of Mangopat, comments: “Any platform must have a deep understanding of its users in real time throughout their entire customer journey to reduce fraudulent activity. We are delighted to welcome Nethone into the family to offer a unique set of anti-fraud capabilities on top of our existing infrastructure. This is a key step in our mission to provide markets and platforms with the best solutions to fuel their success.”

“We are very happy that Advent International becomes our new majority investor and therefore to be part of the rocket that is Mangopay”, underlines Hubert Rachwalski von Rejchwald, CEO and co-founder of Nethone. «Going forward, in addition to accelerating Nethone’s dynamic expansion in line with our standalone business plan, we will work on the huge potential identified among Mangopay’s 2,500+ platform customers. Together we will push our unique ‘Know Your User’ technology and further refine it to be the best industry-specific solution.”.

Nethone will continue to serve businesses around the world, under the leadership of its current CEO and co-founder, Hubert Rachwalski von Rejchwald, who joins Mangopay’s executive committee. The company aims to become the best-in-class anti-fraud platform for prevent fraud in online payments and protect the entire process of users, from registration to the use of the service.

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