MangoPay, a European payment technology provider focused on marketplaces and platforms, is acquiring Nethone, an AI-driven fraud detection and prevention company.
This acquisition will enable MangoPay to enhance its anti-fraud technology specifically tailored for marketplaces, which represent over two-thirds of e-commerce transactions and are consequently attractive targets for fraudsters.
Nethone’s proprietary machine-learning system utilizes behavioral data collection, hardware, software, network intelligence, and behavioral biometrics to secure every touchpoint in the user journey. The two firms assert that their technology can prevent more than 95% of account takeovers, effectively reducing fake accounts, fraud rates, chargebacks, and unauthorized transactions. This improvement is expected to boost conversion and approval rates while decreasing false declines linked to suspected fraud.
Romain Mazeries, CEO of MangoPay, stated, “Every platform must have a deep understanding of its users in real-time throughout their entire customer journey to reduce fraudulent activity. We’re delighted to welcome Nethone to the group and offer a unique set of anti-fraud capabilities on top of our existing infrastructure.”
This acquisition is part of a majority investment in MangoPay from private equity firm Advent International, announced earlier this summer.