Paypal headquarters in Silicon Valley. Image: JHVEPhoto/Shutterstock
PayPal continues its spending spree.
Payments giant PayPal is buying fraud prevention platform Simility Systems for $120m in cash in order to help protect its 237m users.
The acquisition comes just weeks after PayPal acquired Swedish mobile payments platform iZettle for $2.2bn.
‘Digital commerce has exploded and fraudsters have taken note, adapting and developing new methods to carry out their crimes’
– BILL READY
PayPal said the acquisition of Simility will enhance its ability to deliver fraud prevention and risk management solutions to merchants globally.
Machines will govern the next epoch in fraud prevention
“Digital commerce has exploded and fraudsters have taken note, adapting and developing new methods to carry out their crimes,” said Bill Ready, chief operating officer, PayPal.
“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.
“Together with Simility, we 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.
Simility is a Palo Alto-headquartered tech firm that helps companies prevent fraud and abuse in real time with machine learning, big-data analytics and data visualisation capabilities.
Simility was founded in 2014 by Kedar Samant, Rahul Pangam and Uttam Phalnikar.
Prior to the acquisition, it raised $24.7m from investors including PayPal, Trinity Ventures, The Valley Fund and Accel.
“Our vision for Simility was to create an adaptive risk management platform that empowers organisations operating in a digital world to manage an evolving fraud and risk landscape,” said Pangam, CEO at Simility.
“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.”
The acquisition is expected to close in the third quarter of 2018.
Paypal headquarters in Silicon Valley. Image: JHVEPhoto/Shutterstock
