Stripe has announced the acquisition of Bouncer, a start-up that focuses on the development of card authentication technology.
The financial terms of the deal were not divulged.
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Bouncer uses its card scanning and risk technology to help businesses reduce frauds in online transactions.
The technology uses live photos of a payment card to verify its authenticity. It will block a transaction, if the card is found to be stolen.
According to Stripe, the risk assessment is completed in less one second and all data handling is PCI- and GDPR-compliant.
As agreed, Stripe will acquire Bouncer’s team and technology. Subsequently, it will be integrated with and into Stripe’s machine-learning-based fraud prevention tool Radar, further bolstering the latter’s capabilities.
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By GlobalDataStripe Radar business head Simon Arscott said: “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 block more fraud and further increase revenue for millions of businesses around the world who rely on Stripe.”
Bouncer CEO Will Megson said: “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.
“The same signals that Radar learns from 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.”
Last month, Stripe launched Stripe Issuing service in 20 European countries.
