Apr
18
2018
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Stripe debuts Radar anti-fraud AI tools for big businesses, says it has halted $4B in fraud to date

Cybersecurity continues to be a growing focus and problem in the digital world, and now Stripe is launching a new paid product that it hopes will help its customers better battle one of the bigger side-effects of data breaches: online payment fraud. Today, Stripe is announcing Radar for Fraud Teams, an expansion of its free AI-based Radar service that runs alongside Stripe’s core payments API to help identify and block fraudulent transactions.

And there are further efforts that Stripe is planning in coming months. Michael Manapat, Stripe’s engineering manager for Radar and machine learning, said the company is going to soon launch a private beta of a “dynamic authentication” that will bring in two-factor authentication. This is on top of Stripe’s first forays into using biometric factors in payments, made via partners like Apple and Google. With these and others, fingerprints and other physical attributes have become increasingly popular ways to identify mobile and other users.

The initial iteration of Radar launched in October 2016, and since then, Manapat tells me that it has prevented $4 billion in fraud for its “hundreds of thousands” of customers.

Considering the wider scope of how much e-commerce is affected by fraud — one study estimates $57.8 billion in e-commerce fraud across eight major verticals in a one-year period between 2016 and 2017 — this is a decent dent, but there is a lot more work to be done. And Stripe’s position of knowing four out of every five payment card numbers globally (on account of the ubiquity of its payments API) gives it a strong position to be able to tackle it.

The new paid product comes alongside an update to the core, free product that Stripe is dubbing Radar 2.0, which Stripe claims will have more advanced machine learning built into it and can therefore up its fraud detection by some 25 percent over the previous version.

New features for the whole product (free and paid) will include being able to detect when a proxy VPN is being used (which fraudsters might use to appear like they are in one country when they are actually in another) and ingesting billions of data points to train its model, which is now being updated on a daily basis automatically — itself an improvement on the slower and more manual system that Manapat said Stripe has been using for the past couple of years.

Meanwhile, the paid product is an interesting development.

At the time of the original launch, Stripe co-founder John Collison hinted that the company would be considering a paid product down the line. Stripe has said multiple times that it’s in no rush to go public — and statement that a spokesperson reiterated this week — but it’s notable that a paid tier is a sign of how Stripe is slowly building up more monetization and revenue generation.

Stripe is valued at around $9.2 billion as of its last big round in 2016. Most recently, it raised $150 million back in that November 2016 round. A $44 million from March of this year, noted in Pitchbook, was actually related to issuing stock related to its quiet acquisition of point-of-sale payments startup Index in that month — incidentally another interesting move for Stripe to expand its position and placement in the payments ecosystem. Stripe has raised around $450 million in total.

The Teams product, aimed at businesses that are big enough to have dedicated fraud detection staff, will be priced at an additional $0.02 per transaction, on top of Stripe’s basic transaction fees of a 2.9 percent commission plus 30 cents per successful card charge in the U.S. (fees vary in other markets).

The chief advantage of taking the paid product will be that teams will be able to customise how Radar works with their own transactions.

This will include a more complete set of data for teams that review transactions, and a more granular set of tools to determine where and when sales are reviewed, for example based on usage patterns or the size of the transaction. There are already a set of flags the work to note when a card is used in frequent succession across disparate geographies; but Manapat said that newer details such as analysing the speed at which payment details are entered and purchases are made will now also factor into how it flags transactions for review.

Similarly, teams will be able to determine the value at which a transaction needs to be flagged. This is the online equivalent of when certain purchases require or waive you to enter a PIN or provide a signature to seal the deal. (And it’s interesting to see that some e-commerce operations are potentially allowing some dodgy sales to happen simply to keep up the user experience for the majority of legitimate transactions.)

Users of the paid product will also be able to now use Radar to help with their overall management of how it handles fraud. This will include being able to keep lists of attributes, names and numbers that are scrutinised, and to check against them with analytics also created by Stripe to help identify trending issues, and to plan anti-fraud activities going forward.

Updated with further detail about Stripe’s funding.

Jan
23
2018
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Tradeshift Frontiers innovation lab hopes to drive blockchain adoption in the global supply chain

Today, Tradeshift, a procure-to-pay supply chain management platform for SMBs and enterprise, announced Tradeshift Frontiers.  Frontiers is an innovation lab and incubator that will focus on transforming supply chains through emerging technologies such as distributed ledgers, artificial intelligence, and the internet of things. “The use cases we’re working through Frontiers cover… Read More

Dec
13
2017
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Commerce platform iZettle raises $47M at a $950M valuation

 iZettle — the commerce platform based out of Stockholm that competes against companies like Square, Paypal and SumUp to provide card transactions using smartphones and tablets as well as related accounting services — has raised another €40 million ($47 million) as it approaches a $1 billion valuation. CEO and co-founder Jacob de Geer told TechCrunch the money will go towards… Read More

Oct
03
2017
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Elements, Stripe’s new check-out toolkit, aims to boost e-commerce sales completions

 Stripe, the payments startup is now valued at $9 billion, is today taking the wraps off its latest effort to help its customers — which now number in the hundreds of thousands, and include companies like Lyft, Salesforce, Facebook, Deliveroo, and the U.K. government — generate more transactions, and thus greater returns for Stripe itself. It is launching Elements, a free toolkit… Read More

May
03
2017
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Square up 7% after surpassing quarterly expectations

 Square, the payments company founded and run by Jack Dorsey, released its quarterly financial results for the first quarter after the bell on Wednesday. The company beat expectations, bringing in $462 million in revenue, when investors were forecasting $451 million. This is a 22 percent increase from the same period last year. Read More

Mar
23
2017
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Lystable takes $10M top-up to tackle freelancer payments

 Lystable, a startup that makes a workflow management platform aimed at businesses needing to manage lots of freelancers, has topped up its Series A again — this time with an additional $10 million, which founder and CEO Peter Johnston says will be used to fund a change of business model with a payments focus. Read More

Nov
07
2016
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Stripe launches Works With Stripe, a directory of apps that integrate with its payments

works-with-stripe Stripe, the company that competes against the likes of PayPal by letting businesses add payment services into their apps and websites with a few lines of code, is today launching a new directory that plays into its bigger ambition to position itself as not just a payment tech startup, but a wider platform for business services.
Works With Stripe, as the new directory is called, brings… Read More

Sep
08
2016
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Revel Systems inks payments deal with Shell as rumors swirl of a sale to IBM

14807800057_06db2ece9e_k Reports claim that point-of-sale startup Revel Systems is in early acquisition negotiations with IBM, and while both Revel and IBM declined to comment when we asked about it, a deal that the startup announced today could provide an interesting clue for why a company like Big Blue might be interested in buying it. Today Revel announced a deal with Shell, the oil and gas giant, to implement… Read More

Mar
18
2016
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Stripe’s startup toolkit Atlas opens for business in Cuba

cuba A month ago, payments company Stripe launched Atlas, a toolkit for startups to incorporate in the U.S. and lay the groundwork for growing their businesses online. Aimed largely at small enterprises outside of the U.S., Atlas is making a notable addition to the roster of countries covered under the program: from today, it will begin to accept Atlas applicants from Cuba, so that… Read More

Jun
09
2015
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Stripe Now Has An iPhone App For Monitoring Payment Activity

stripe app Stripe, a service that companies can use to accept payments, has a new way for businesses to track purchases and user activity — an iPhone app. The new iPhone app does basically everything its existing online dashboard does, but brings it to an interface more suited for a mobile device. Businesses can also set up notifications for whenever a payment or purchase is made or set up a… Read More

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