Stripe acquires Bouncer, will integrate its card authentication into the Radar fraud detection tool



On the heels of a $600 million fundraise earlier this year, payments giant Stripe has been on an acquisition march to continue building out its business. In the latest development, the company has acquired Bouncer, a startup based in Oakland that has built a platform to automatically run card authentications and detect fraud in card-based online transactions. Its technology is tailored for mobile transactions and includes a flow to help users authenticate themselves if they are mistakenly flagged, to come back into an app legitimately (hence the name).

Terms of the deal are not being disclosed, but Stripe is acquiring both Bouncer’s technology and the team, which will be integrated into Stripe Radar. Started in 2018, Radar is Stripe’s AI-based anti-fraud technology toolset, and most of the tech — which is focused around preventing fraudulent transactions on the Stripe platform — has been built in-house up to now. Stripe says that Radar already prevents “hundreds of millions of dollars of fraud for businesses” each year.

“Bouncer is a great tool for modern internet businesses. It allows them to quickly identify stolen cards, while also ensuring legitimate customers can transact without being blocked,” said Simon Arscott, business lead for Stripe Radar, in a statement. “We’re thrilled to welcome the Bouncer team, and their years of experience building payment authentication software for businesses, to Stripe and to enable their technology for Radar users. With the addition of advanced card scanning capabilities, Stripe Radar will be able block more fraud (Read more...)