Mangopay is a turnkey payment solution dedicated to marketplaces launched in 2013 by Leetchi. Crédit Mutuel Arkea had become the majority shareholder of both companies in 2015, then sold the majority of its shares to the Advent International fund last April. On November 29, Mangopay announced the acquisition of Nethone, a fraud detection and prevention company, thanks to Advent’s financing, which will enable it to offer marketplaces a holistic payment and risk management solution.
E-commerce, already flourishing, has been boosted by the pandemic. At the same time, online fraud has also increased: according to Signal Sciences, e-commerce retailers were facing an average of 206,000 web attacks per month in 2020. More and more Internet users are having their online accounts hacked through increasingly sophisticated methods: the annual amount of fraud is estimated to be around $12 billion and is expected to reach $40 billion by 2027.
The world’s leading online marketplaces sold $3.23 trillion worth of goods in 2021. Sales via platforms such as those operated by Alibaba, Amazon, eBay… accounted for two-thirds of global e-commerce sales last year, according to Digital Commerce 360 analysis.
As intermediaries, platforms are even more susceptible to malicious acts: identity, credit card and chargeback fraud, merchant impersonation, fake reviews…
The payment management solution proposed by Mangopay is aimed at marketplaces, participatory financing platforms and European fintechs. Its customers include Rakuten, La Redoute, Le Boncoin, Vinted, But, Ragtime, Kiabi…
Prevent and reduce fraud with Know Your User technology
The acquisition of Nethone allows Mangoplay to meet the specific needs of its customers in terms of payment and fraud prevention. Nethone’s Know Your User profiling technology enables them to better understand their users, both online and mobile, in real time.
This ML-based solution integrates behavioral data collection, hardware, software, network intelligence, and biometrics to provide granular user analytics that detect malicious patterns and automatically eliminate fraud threats.
It enables platforms to make informed decisions and secure every point in the user journey, whether on a smartphone or a desktop.
According to Mangoplay’s release, based on Nethone’s current use cases, and in a single integration, this risk management solution :
- Enables platforms to operate in a secure environment by preventing over 95% of account takeovers (ATOs), reducing false accounts, fraud rates, chargebacks and unauthorized transactions;
- Supports business growth by unlocking upsell potential, increasing conversion rates by 9% and approval rates by 26%, and reducing false declines due to suspected fraud;
- Contributes to an operationally efficient and scalable platform by reducing manually reviewed traffic by 60% through automation.
Romain Mazeries, CEO of Mangopay, states:
“Every platform must have a deep understanding of its users in real time throughout their customer journey to reduce fraudulent activity. We are excited to welcome Nethone to the fold and offer a unique set of anti-fraud capabilities on top of our existing infrastructure. This is a key step in our mission to provide marketplaces and platforms with the best solution to ensure their success.”
The collaboration between Mangopay and Nethone is already enabling platforms to improve conversion rates through optimized scoring of payment transactions, better management of 3DS2 exemptions, and identity check validation.
Nethone will remain a standalone company but its co-founder and CEO, Hubert Rachwalski von Rejchwald, will join Mangoplay’s executive committee. He states:
“We look forward to taking our unique Know Your User technology and refining it with Mangopay to give platforms the anti-fraud solution they need to continue to thrive.”
Translated from Mangopay fait l’acquisition de Nethone pour protéger les marketplaces de la fraude
