In the excess of minimizing the money scam in the world today, PayPal Holdings has agreed to acquire fraud prevention technology company via Simility. The agreement was done on Thursday between the two companies and the price is said to come to conclusions at $120 million (roughly N48.260 billion ).
The California-based Simility sells machine-learning-based technology to help online merchants spot fraudsters and improve risk management to avoid some heartbreaks.
PayPal plans to make Simility’s services available to its merchants following the close of the transaction, which is expected by the end of the third quarter, it said.
The acquisition underscores PayPal’s broader ambition to offer small online merchants the same capabilities of bigger e-commerce providers, Bill Ready, the company’s chief operating officer said in an interview.
According to Bill Ready; “We are buying a company that provides great tools that merchants can use on their own,”. For instance, merchants will be able to use Simility’s technology to adjust their fraud controls based on what kind of products they sell.
These range from lending to small businesses to facilitating money transfers between merchants and customers.
“We have one of the largest data sets about how online fraud happens,” Ready said.Simility’s services will benefit from the ability to draw upon PayPal’s extensive data set on fraud, he added.
The Simility deal comes as the threat of fraud for e-commerce companies continues to grow, as more business moves online and fraudsters refine their techniques.