As we previously discussed in our article – payments providers such as Stripe, Adyen, and Paypal are moving into the eCommerce fraud prevention industry.
For example, PayPal recently launched its new Commerce Platform with native fraud prevention capabilities. These changes are a natural progression of the payments’ industry players desire to differentiate their services. The goal is to leverage their vast data to help merchants protect themselves against fraud on the payment processor level.
Another example is Stripe’s new Chargeback Guarantee. Traditionally, only standalone, third party fraud prevention solutions offered a chargeback guarantee. This disruptive shift may ultimately create seismic changes in the fraud protection and payments landscape.
Ecommerce Fraud Solution Companies Up Their Game
In order to remain competitive and attractive to Merchants, dedicated fraud protection solutions are now enhancing their solutions. This includes increasingly comprehensive chargeback guarantees, plus additional functionality.
In a recent announcement by eCommerce fraud protection solution Signifyd, the company revealed it has launched INR Chargeback Protection. INR, or Item-Not-Received Chargebacks, are created when the customer claims they never received delivery of a shipped item.
Another eCommerce fraud protection solution, Riskified is also taking steps to expand its offering. It now offers merchants Account Takeover Protection as well as Payment Decline recovery.
Another fraud protection vendor, Forter, has focused on reducing PSD2 SCA (Strong Customer Authentication) requirements. Its goal is to alleviate friction associated with requiring an additional authentication from merchants during the payment process.
Payment Providers Will Continue to Ramp Up the Competition
These recent announcements and enhanced feature roll-outs are likely just the opening salvo from fraud protection vendors. In the future, they will take additional steps to shore up their businesses in anticipation of encroachment from payment providers.
We are likely to continue to witness this trend in the coming years. Competition will only heat up; overlap between payment providers and fraud vendors will grow.
However, merchants will be the true winners in all of this. They will increasingly be able to consolidate solution providers and reduce overhead. In turn, that will give them an increasingly simplified, holistic approach to eCommerce fraud prevention solutions and payments.
