Payment solution provider MANGOPAY has announced the acquisition of AI fraud detection and prevention company Nethone to offer marketplaces anti-fraud solutions. Following this announcement, MANGOPAY will develop these solutions looking to enable platforms of any type to change the threats and challenges brought forth by malicious activity into business decisions that are both accurate and profitable.

With marketplaces accounting for more than two thirds of global ecommerce transactions, they make a prime target for fraudsters, and being third-party intermediaries, platforms are thought to be increasingly vulnerable to fraud in comparison with classic digital commerce. In order to enable better detection and prevention of threats in real-time, as well as to predict future patterns of progressively sophisticated malicious activity, platforms have a need for enhanced security features with augmented data-centric capabilities. Having this knowledge, MANGOPAY and Nethone are working towards the creation of a fraud prevention solution built specifically for platforms and marketplaces.

Nethone’s product offering and how it aligns with the collaboration Nethone provides a proprietary machine-learning powered solution that incorporates behavioural data collection, hardware, software, network intelligence, as well as behavioural biometrics to enable platforms to carry out informed decisions and secure each point within the user’s journey, both on mobile and desktop. Having an extensive range of mobile-native attributes analysed, the solution accurately identifies fraudulent activity within the expanding number of transactions processed on mobile devices. With a basis in Nethone’s use cases, the solution is thought to do the following through a single integration: Enable platforms to operate in a safe environment by preventing more than 95% of account takeovers (ATO), reducing fake accounts, fraud rates, chargebacks, and unauthorised transactions.

Support businesses’ scalability by unclosing upsell potential, increasing conversion rates by 9% and approval rates by 26%, and reducing false declines caused by suspected fraud. And help build an operationally efficient and scalable platform by reducing traffic that is manually reviewed by 60% through means of well-detailed recommendations. Additional details on the partnership Following MANGOPAY’s enhancement of its payin, payout authentication and seller onboarding capabilities with deeper know your user intelligence, marketplaces are protected from sophisticated fraud and abuse, while simultaneously being enabled to offer both their buyers and sellers an improved experience.

As of now, MANGOPAY and Nethone’s collaboration already gives platforms the option of improving conversion rates due to the optimisation of payin transaction scoring, improved 3DS2 exemption managements, and ID check validation. MANGOPAY representatives have advised that each platform should have a deep understanding of its users in real-time throughout their customer journey to reduce fraudulent activity. By having Nethone join their group, the company can now offer anti-fraud capabilities in addition to their already existing infrastructure, with this step believed to be key in the enterprise’s mission of offering marketplaces and platforms solutions that drive their success.

The move follows Advent International’s acquisition of MANGOPAY in April 2022, when it became the company’s new majority investor with the goal of furthering the MANGOPAY’s expansion and product offering. Nethone officials have stated in the press release that, going forward, the companies will work on the potential identified among MANGOPAY’s existing platform of over 2,500 customers, collaborating in taking Nethone’s know your user technology and refining it to become a best-in-class platform-specific solution. The company will continue in serving companies worldwide, having the vision of building an anti-fraud platform that prevents online payment fraud and secures the entire user journey, from registration to use of service.

For more information about Nethone, please check out their detailed profile in our dedicated, industry-specific Company Database. .