PayPal's latest purchase, Simility, brings security muscle
PayPal continued its spending spree Thursday with the acquisition of fraud-detection startup Simility for $120 million.
Earlier this week, the e-commerce payments giant announced a $400 million deal to acquire Hyperwallet and its payment distribution technology. The deal for Palo Alto-based Simility takes aim at a different need: applying machine learning to its data collection to prevent various types of fraud.
“Digital commerce has exploded, and fraudsters have taken note, adapting and developing new methods to carry out their crimes,” Bill Ready, chief operating officer at PayPal, said in a press release. “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."
In adding Simility to PayPal's fraud tools, PayPal "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,” Ready said.
After the deal closes later this year, merchants on the PayPal platform will gain access to fraud tools they can customize to reflect the nuances of their businesses through their existing account management dashboard.
The machine learning-powered tools dynamically adapt and evolve with each transaction, PayPal said, to enhance payment experiences for merchants and their customers 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,” Rahul Pangam, co-founder and CEO of Simility, said in the release.
“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,” Pangam added.