With cybersecurity continuing to be an increasing problem and focus in the digital space, Stripe has resulted in unveiling a new paid product to help customers combat online payment fraud. This activity stands as one of the leading negative effects of data breaches today.
Stripe is launching Radar for Fraud Teams, which is an extension of its free AI-driven Radar service that operates hand in hand with Stripe’s key payments API in a bid to detect and stop fraudulent transactions.
Aside from unveiling Radar for Fraud Teams, Stripe is planning bigger things in the coming months. The company’s engineering manager for machine learning, Michael Manapat, asserted that Stripe would soon deliver a private beta of a dynamic authentication that would provide two-factor authentication. This effort adds to Stripe’s first venture into the use of biometric factors in payments, especially those made by leading technology partners such as Google and Apple.
The first version of Radar was introduced to the market in October 2016, and according to Manapat, it has averted $4 billion in fraudulent activities on behalf of its many clients. Fraud has had considerable side-effects on e-commerce. In fact, a given study estimated $57.8 billion in e-commerce fraud throughout eight main verticals in just a year, from 2016 to 2017. Stripe’s knowledge of four out of five payment card numbers internationally (based on its payments API ubiquity) delivers a strong position to handle e-commerce fraud.
Stripe’s new paid product comes alongside an upgrade to its main, free product dubbed Radar 2.0. The company claims the product will have more sophisticated machine learning integrated into it in an attempt to boost fraud detection by 25% more than its earlier version.
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New features for the entire product (free and paid) will include the ability to recognize when a proxy VPN is being utilized and ingest billions of data points for training its model. Nevertheless, the paid product is undoubtedly an exciting product.
John Collison, Stripe’s co-founder, highlighted during the launch of the original product that the company was considering to create a paid product in the future. Furthermore, the company has made multiple statements citing that it is not in a hurry to go public. However, the launching of a paid product signifies the gradual buildup of additional revenue generation and monetization.
According to its last round of financing in 2016, Stripe is valued at approximately $9.2 billion. In the November 2016 round, the company raised a whopping $150 million. The new product is intended for big businesses with a committed fraud detection team. Furthermore, the product would be priced at an extra $0.02 for each transaction, which will be added to the company’s basic transaction charge of a 2.9% commission as well as 30 cents per successful card fee in the US.
The main advantage of using the paid product would be helping teams to customize how Radar operates with their transactions. This endeavor will call for an additional complete set of data for the teams involved in reviewing transactions and another granular set of tools to evaluate when and where sales are reviewed.