With the surge in online fraud following the deployment of Europay, MasterCard and Visa (EMV) chip standards, ecommerce merchants are increasingly turning to third-party solutions to eliminate fraud losses, especially for orders being shipped overseas and for increased sales volume during the peak holiday season, and there seems to be a significant amount of interest in such providers.
Ecommerce fraud protection provider Signifyd, for example, announced it has secured $56 million in Series C financing led by Bain Capital Ventures, with additional participation from Menlo Ventures, American Express Ventures and other existing investors.
The company's latest round of funding will be used to expand its engineering team and scale its machine learning-enable system for merchants around the globe.
Signifyd's Guaranteed Fraud Protection offering provides a 100 percent financial guarantee against fraud or chargebacks on every approved order, thereby shifting the liability for fraud away from Internet retailers. Since Signifyd is only paid on orders it approves, merchants stand to receive the additional benefit of accepting more orders they had previously turned away due to fear of fraud.
"Our rapid growth has been made possible by our customers' ability to scale, enter new markets and accept orders their competitors have turned away," explained Signifyd co-founder and CEO, Rajesh Ramanand.
"Ecommerce is fiercely competitive and we see a whole new wave of competition arriving in the form of brick-and-mortar retailers shifting their focus online. In this environment, merchants are seeking a fully predictable cost for fraud that can eliminate liability and free up internal resources to focus on growth, customer service along with product and service innovation."