The deal comes on the heels of Stripe's recent TaxJar acquisition, as the payments processing giant continues expanding. Here are the top-line bullets you need to know.
Payments giant Stripe has acquired Bouncer, a card-scanning and authentication solution, for an undisclosed amount. The company’s team and technology will be integrated into Stripe Radar, its anti-fraud platform.
WHO ARE THE PARTIES TO THE DEAL?
- Bouncer: California-based Bouncer is a card-scanning and risk detection technology platform that identifies fraudulent transactions by running automated card authentications. The application performs a risk assessment when an online or mobile transaction is flagged as high-risk and, with the help of live pictures of the card, either authenticates or rejects it. Bouncer’s customers include Groupon, OfferUp, ibotta, and Dealerware, among others.
- Stripe: California-based Stripe is a payment processing platform that allows merchants to accept online payments and process financial transactions in over 100 countries. Radar, the company’s anti-fraud solution, detects and minimizes unauthentic transactions on the Stripe platform and has reportedly blocked fraudulent transaction attempts worth over $1B to date. Stripe recently acquired a cloud-based tax services provider, TaxJar. The company is currently valued at $95B.
WHY DOES THE MARKET MATTER?
The acquisition materialized in the fraud detection and prevention space where:
- The global fraud detection and prevention market is projected to grow at a CAGR of 18.2% and reach a value of $40.8B by 2026, according to Mordor Intelligence.
- Growing security concerns around card payments are leading to greater investments in building a robust fraud mitigation infrastructure using advanced technologies like big data, data analytics, predictive modeling, and deep learning.
- The Covid-19 pandemic has led to an increase in the number of digital payments and their adoption, leading to an increased focus on security for cashless payments.