Finovate Alumni News

Around the web

  • Digital Finance Institute features Ethoca, Financeit, Flybits, Horizn, On Deck Canada, Salt Edge, Sensibill, and TickSmith in its look at the top fintech companies in Canada in 2019.
  • AdviceRobo launches new pan-European PSD2 categorization and default prediction API for lenders, CatRobo.
  • Thomson Reuters purchases regtech collaboration platform, HighQ.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Finovate Alumni News

On Finovate.com

  • Marqeta Secures $260 Million in Series E Funding.
  • Fundopolis Turns to AlphaPoint for Tokenization Initiative.

Around the web

  • Mastercard partners with Samsung Electronics to develop mobile digital verification solutions.
  • YellowDog appoints James Stevens as its new Chief Commercial Officer.
  • Chile’s largest acquirer Transbank to deploy UP Retail Payments solution from ACI Worldwide.
  • ThetaRay adds Steve Mann as Chief Marketing Officer.
  • Spectrum Equity closes sale of Ethoca to Mastercard.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Mastercard to Acquire Digital Commerce Fraud Fighter Ethoca

Terms were not disclosed, but the announcement today that Mastercard has agreed to acquire real-time anti-fraud solution provider Ethoca is another sign of how seriously financial services firms are taking cybersecurity.

The deal, which is expected to close in Q2 of this year, will allow Mastercard to leverage Ethoca’s network of more than 5,000 merchants and 4,000 financial institutions to fight digital commerce fraud in general and the challenge of chargebacks in specific.

Ethoca’s technology enables merchants to get real-time data when potentially fraudulent transactions are spotted. This empowers merchants to analyze transactions and confirm, stop delivery, and/or reverse transactions before the chargeback process begins.

Calling Mastercard “a natural home,” Ethoca CEO Andre Edelbrock looked forward to extending the reach of the company’s anti-fraud solutions. “For more than a decade, we’ve connected e-commerce businesses with banks to make the payments system simpler and more secure,” Edelbrock said. “We are excited to have the opportunity to bring our service to more places and people, ultimately contributing to the best possible online payment experience.”

In a statement, Mastercard said that it plans to scale Ethoca’s capabilities and combine them with its own cybersecurity protocols, data insights, and AI-powered solutions to help fight e-commerce fraud. The press release noted a report from Juniper Research that indicated that retailers anticipate losing $130 billion over the next five years due to online fraud.

“Ethoca is a strong addition to our multilayered cyber strategy, helping customers take immediate action against fraud and eliminate chargebacks before they can occur,” Mastercard president of cyber and intelligence solutions Ajay Bhalla said. “In turn, consumers are provided with a better checkout experience every time they shop at a participating site.”

Ethoca demonstrated its Ethoca Alerts solution at FinovateEurope 2016. Founded in 2005, and headquartered in Toronto, Ontario, Canada, the company partnered with French payment system Cartes Bancaires in December. In October, Ethoca teamed up with American Express to help merchants better communicate with AMEX Customer Care during service calls.

With investors including Pivot Investment Partners, Spectrum Equity, and Difference Capital, Ethoca had raised $45 million in funding prior to today’s acquisition announcement.

Mastercard demonstrated its Cash Pick-Up solution at FinovateFall 2017. Last year, the company teamed up with Vipera to present mobile payment solution, SME-Pay, at FinovateEurope 2018.

Finovate Alumni News

On Finovate.com

  • Fiserv Helps NationalLink Maximize Smart Safe Technology.
  • Mastercard to Acquire Digital Commerce Fraud Fighter Ethoca.

Around the web

  • Carsharing firm HyreCar leverages identity verification technology from Mitek for its mobile onboarding app.
  • PayPal invests $750 million in Argentina’s e-commerce company, MercadoLibre.
  • Tinkoff Bank reports 2018 highlights including launch of new mortgage app, a joint P2P money transfer offering with Sberbank, and more than 2.7 million new active credit customers.
  • Best of Show winner Voleo chosen to participate in Netherlands-based fintech research program.
  • ThreatMetrix teams up with Blue Turtle Technologies to help market its fraud prevention solution to customers in Africa.
  • ArthaYantra wins Fintech of the Year (India) at The Asset Triple A Digital Awards.
  • Stash launches Stock-Back, a rewards program to bridge banking and investing.
  • Jack Henry to collaborate with the Zelle Network to launch JHA PayCenter.
  • InComm expands into lottery industry with Linq3 Technologies acquisition.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

CB Alerts Portal from Ethoca Helps Cartes Bancaires Merchants Fight Fraud

Ethoca has partnered with French payment system Cartes Bancaires to develop the CB Alerts portal that helps online merchants collaborate with card-issuing banks to lower chargebacks and reduce fraud. The solution, which works in near-real-time, gives merchants an early warning of cardholder-confirmed fraudulent transactions, enabling merchants to block an illegitimate sale, and/or prevent the shipment of goods, as well as the provision of services.

“Ethoca is honored to have been chosen to work with CB to help e-merchants and French banks reduce fraud and eliminate the need to raise chargebacks,” Ethoca EVP of Business Development Trevor Clarke said. “Merchants are now able to take immediate action in cases of confirmed fraud and are free [to grow] their businesses and [offer] their customers exceptional experiences.”

Merchant subscribers to CB Alerts get notification of fraudulent transaction activity as soon as piracy, loss, or theft of a payment card is reported to the bank by the cardholder. The solution can automate the notification process for larger merchants with higher volumes.

“We launched CB Alerts as part of our desire to enrich the services provided to merchants and banks,” Philippe Laulanie, CEO at Groupement des Cartes Bancaires CB, said. “Security is in the DNA of CB, along with the implementation of the PSD2, RTS, and strong authentication, this portal will help to fight e-commerce fraud.”

Cartes Bancaires is the leading payment system in France. Last year, the firm boasted 68+ million cards in circulation and nearly 12 billion transactions totaling more than $640 billion (€564 billion). Cartes Bancaires was founded in 1984 to provide the country with interoperable universal card payment and cash withdrawal systems. As of 2017, CB has more than 100 banks and payment institution members globally.

Ethoca demonstrated its Ethoca Alerts solution at FinovateEurope 2016. This fall, the company announced a partnership with American Express, leveraging its Ethoca Eliminator solution to help AMEX card holders access the detailed transaction information they need to resolve customer service calls faster. This spring, the company launched its integrated solution suite, which features Ethoca Eliminator, Ethoca Alerts, as well as Enhanced Representments. This latter feature helps merchants better understand chargeback processing and evidence rules to make it easier for them to determine how and when to challenge transaction disputes.

With $45 million in funding courtesy of investors such as Spectrum Equity, Pivot Investment Partners, and Difference Capital, Ethoca is based in Toronto, Ontario, Canada, and was founded in 2005. More than 5,400 merchants in 40+ countries benefit from Ethoca’s services and solutions. The company’s customers include eight of the top 10 North American e-commerce brands, 14 of the top 20 North American card issuers, and six of the top ten U.K. card issuers.

Finovate Alumni News

On Finovate.com

  • Finovate Alums Digital Onboarding, ForwardLane, and SizeUp Join MassChallenge’s 2019 FinTech Inaugural Program.
  • CB Alerts Portal from Ethoca Helps Carte Bancaires Merchants Fight Fraud.

Around the web

  • Agreement Express and TD Ameritrade Institutional deliver straight-through account opening to Veo Platform.
  • Gusto’s Flexible Pay is now available to employees directly in Texas through a newly created subsidiary Gusto Capital LLC.
  • AlphaPoint announces support for Stellar Lumens.
  • Lincoln Financial Group unveils new partnership with eMoney Advisor.
  • Sezzle hires former Target, TD Bank executive Jamie Kirkpatrick as its new Chief Risk Officer.
  • Averon co-founder and COO Lea Tarnowski earns finalist spot in Banking Technology Awards’ Women in Technology Leadership category.
  • Coinbase introduces instant PayPal withdrawals for U.S. customers.
  • Ripple and UAE Exchange team up to launch blockchain-powered cross-border remittance payment services in Asia in early 2019.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Ethoca and American Express Partner to Resolve Card Disputes Faster

American Express merchants and card members in the U.S. just won a new ally when it comes to quickly resolving disputes related to card purchases. Ethoca Eliminator, developed by leading  technology solution provider Ethoca, will enable card holders to get more detailed transaction information in real-time, making it easier for them to communicate with AMEX Customer Care professionals during customer service calls.

“American Express is committed to providing merchants and card members (with) a simple process for resolving disputes,” SVP of Global Strategy & Capabilities with AMEX’s Global Merchant & Network Services Group, Priscilla Kam said. “Ethoca’s platforms can help prevent card member disputes before they happen, helping merchants save time and costs associated with disputes and chargebacks.”

The new capability is expected to be available in the first few months of 2019. Ethoca Eliminator serves as a complement to the company’s Ethoca Alerts solution, which American Express uses to alert merchants to possible fraudulent transactions.

“Our suite of collaboration-based solutions is focused increasingly on preventing unnecessary disputes before they ever disrupt a customer purchase journey,” Ethoca CMO and Product Officer Keith Briscoe said. “(This) ultimately help(s) to ensure a better experience for all parties in the ecosystem.”

Ethoca demonstrated its Ethoca Alerts solution at FinovateEurope 2016. The company launched its new Integrated Solution Suite this spring which, in addition to Ethoca Eliminator and Ethoca Alerts, also features Enhance Representments. This third feature makes it easier for merchants to leverage Ethoca’s knowledge of chargeback processing and evidence rules to challenge transaction disputes more effectively.

Founded in 2005 and headquartered in Toronto, Ontario, Canada, Ethoca won Most Innovative Online Solution at the Fraud Awards 2018 earlier this month. In August, the company picked up a trio of honors at the Australian Fraud Awards 2018.

Ethoca’s solutions are used by more than 5,400 merchants in more than 40 countries, serving 590+ card issuers in 20+ countries. Eight of the top ten North American ecommerce brands, 14 of the top 20 North American card issuers, and six of the top ten U.K. card issuers use Ethoca’s technology.

Ethoca’s New Integrated Solution

Ethoca, a collaboration network that aims to enhance merchant card acceptance and reduce chargebacks, launched an Integrated Solution Suite this week.

Merchants who leverage the new suite of tools not only mitigate chargebacks from genuine fraud, friendly fraud, and false claims, they also facilitate increased card acceptance rates. The suite is comprised of three main solutions, Ethoca Eliminator, Ethoca Alerts and Enhanced Representments.

Ethoca Eliminator allows card issuers to leverage merchant intelligence– such as shopping cart details, IP address, and account details– when the customer clicks on a transaction within their mobile banking app or calls into a bank’s call center to investigate the purchase. With this process, cardholders are able to better recognize their own transactions instead of assuming they are fraudulent. This helps avoid situations when good transactions are unwittingly reported as fraud. When a top five U.S. card issuer and major online merchant piloted Eliminator, they found that 38% of disputes that would have become chargebacks were deflected. More than 15 major card issuers and several digital merchants have signed on to begin using Ethoca Eliminator throughout 2018.

The company most recently demoed its flagship product, Ethoca Alerts, at FinovateEurope 2016 in London. When a cardholder goes through the Eliminator process and still insists a transaction is fraudulent, Ethoca taps into its network of card issuers who confirm or repudiate the transaction in question. When a transaction is confirmed to be fraudulent, Ethoca alerts its network of merchants who stop the delivery of the good or service in question to avoid the chargeback.

The third product in the suite is Enhanced Representments. This tool helps merchants who wish to challenge transaction disputes by leveraging Ethoca’s knowledge of chargeback processing and evidence rules. You can think of it as a court session held to keep things fair for both the merchant and the disputing consumer as they sort through the evidence. In the press release, Ethoca describes this as decreasing pain “for card issuers who are often negatively impacted by indiscriminate representment behaviors.”

“Ethoca’s belief is that a layered approach – powered by the global collaboration network we pioneered – is the only real solution to combat the pervasive friction and poor customer experience typical of today’s ecommerce environment,” said Keith Briscoe, Chief Marketing & Product Officer at Ethoca. “This new solution suite takes us one step closer to our vision: creating a new set of rails for the rapid exchange of rich transaction data and intelligence designed to finally make frictionless ecommerce a reality,” he added.

Founded in 2005, Ethoca is headquartered in Toronto, Canada. The company is partnered with more than 5,400 merchants in 40+ countries and 585 card issuers in 20+ countries to help them avoid losses from card not present (CNP) transactions. This network includes eight of the top ten North American ecommerce brands, 14 of the top 20 North American card issuers, and six of the top ten U.K. card issuers. Andre Edelbrock is CEO.

Finovate Alumni News

On Finovate.com

  • Gusto Goes Freemium.
  • Onfido to Power ID Verification for SnappCar.

Around the web

  • Tradeshift partners with Canon Business Process Services to enable clients to digitize their supply chain.
  • Ayondo to list on Singapore Exchange.
  • TD Finance announces partnership with auto shopping and financing innovator, AutoGravity.
  • Jumio brings KYC, AML, onboarding support to crypto platform, Monaco.
  • Money.pl looks at the number of Polish companies that demoed at FinovateEurope 2018 this month.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Finovate Alumni News

On Finovate.com

  • SME Financing Meets Cross-Border Payments as BlueVine Partners with Veem.
  • Experian Acquires ClearScore for $385 Million.
  • Pindrop Partners with Voice Solutions Provider Aeriandi.

Around the web

  • Ethoca launches Integrated Solution suite to eradicate chargebacks.
  • Revolut launches direct debits in Europe.
  • PayU, Kreditech to offer cardless EMI option of Rs 1 lakh for online purchases.
  • Lendio franchise announced in South Charlotte region.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.