Having splashed out $2.2 billion on iZettle, PayPal is continuing its spending spree on new technology with the acquisition of Simility, a fraud prevention and risk management platform, for a purchase price of $120 million in cash, subject to certain adjustments.
The acquisition of Simility will enhance PayPal’s ability to deliver fraud prevention and risk management solutions to merchants globally. “Digital commerce has exploded, and fraudsters have taken note, adapting and developing new methods to carry out their crimes,” comments Bill Ready, chief operating officer, PayPal.
“PayPal has been at the forefront of developing innovative fraud prevention and risk management solutions for nearly 20 years, and now, merchants will be able to configure those solutions to manage the unique complexities of their businesses. Together with Simility, we will be able to put more control in the hands of our merchants to fight fraud while helping make commerce experiences faster and more secure.”
Following the close of the transaction, merchants on the PayPal platform will gain access to fraud tools that can be customized to reflect the nuances of their businesses through their existing account management dashboard.
These machine learning-powered tools, which dynamically adapt and evolve with each transaction, will enhance payment experiences for merchants and their customers by helping to reduce fraudulent payment activity and, in some cases, verifying transactions that may have otherwise failed.
“Our vision for Simility was to create an adaptive risk management platform that empowers organizations operating in a digital world to manage an evolving fraud and risk landscape,” notes Rahul Pangam, co-founder and CEO, Simility. “We are excited to enter the next phase of our growth with PayPal and are thrilled to join them to help drive the next generation of payment and commerce solutions while scaling our business together.”