News, Education and Events Decoding Digital Payments & Fraud

News, Education and Events Decoding Digital Payments & Fraud

PayPal Acquires AI-Based Antifraud Provider Simility for $120 Million

PayPal Acquires AI-Based Antifraud Provider Simility for $120 Million

After a string of payments-related acquisitions, PayPal turned its attention back to fraud prevention this week when it acquired antifraud technology provider Simility for $120 million.

Increasingly, online payment providers are integrating robust antifraud capabilities—either through partnerships or acquisition—as a value-add to their core services. PayPal was an early proponent of this strategy when it acquired Israeli antifraud pioneer Fraud Sciences in 2008. By nabbing Simility, PayPal will be able to offer a fraud prevention solution that incorporates machine learning to analyze data, identify patterns and detect anomalies.

“Digital commerce has exploded, and fraudsters have taken note, adapting and developing new methods to carry out their crimes,” said Bill Ready, chief operating officer for PayPal. “PayPal has been at the forefront of developing innovative fraud prevention and risk management solutions for nearly 20 years, but until now, merchants haven’t been 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.”

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