Outseer Emerging Payments detects and prevents fraud in installment transactions
Outseer introduces the next step in its strategic evolution with Outseer Emerging Payments.
This announcement marks Outseer’s first expansion beyond its market leading Outseer 3-D Secure payment authentication offering to enable growth and customer value beyond traditional card-not-present (CNP) transactions. Buy Now, Pay Later (BNPL) Installments represents the first Outseer payments solution within the new Outseer Emerging Payments platform.
The rapid acceleration of digital transformation has evolved commerce models across the spectrum of pay before, pay now, and pay later options. With more methods and places for people to pay, opportunities to drive new digital commerce growth are expanding well beyond traditional CNP.
But with payment fraud evolving, the ecosystem must be prepared for new risks. According to The Aite-Novarica Group, CNP fraud now accounts for over half of all gross fraud losses which is expected to reach $17.2 billion by 2023. Through this investment in emerging payment solutions, Outseer will enable an entire ecosystem of customers, financial institutions, merchants, and other fintech providers to deliver more secure programs by providing continuous authentication and protection.
“Outseer is the culmination of decades of science-driven innovation in anti-fraud and payments authentication solutions,” said Reed Taussig, CEO of Outseer. “Today’s announcement is a critical next step. Our strategic investment in Outseer Emerging Payments delivers essential continuous authentication across the payments journey, protecting against fraud across all interactions and transaction types.”
Outseer’s leading technology and heritage as an industry pioneer serves as the foundation for these new offerings. These investments include the Outseer Risk Engine, which analyzes hundreds of data elements and uses predictive algorithms to detect and prevent fraud, and the Outseer Global Data Network, among the first contributory data consortiums for fraud prevention that amasses risk signals from across thousands of Outseer customers and partners.
The new Buy Now, Pay Later Installments solution supports the explosion in installment payments. According to Insider Intelligence, global Buy Now, Pay Later spend is set to hit $680 billion in volume by 2025.
As BNPL installment usage explodes, fraudsters are capitalizing on these trends. Two of the most prevalent forms of fraud perpetrated in BNPL installment use cases are Synthetic Identity fraud and Account Takeover (ATO) fraud. Synthetic identity fraud is a $6 billion dollar problem, and according to the FBI, is one of the fastest growing types of financial crimes. ATO fraud growth has been fueled by the surge in data breaches in recent years, increasing 850% between Q2 2020 and Q2 2021.
Outseer’s BNPL Installments solution is designed to address these and other fraud scenarios to provide continuous authentication throughout the digital payments journey. This includes end to end protection for cardholders as they Enroll, Shop & Pay, and Manage their installment transactions.
“The growing popularity of BNPL over the past couple of years has attracted the attention of fraudsters as well,” said Julie Conroy, Head of Risk Insights and Advisory at Aite-Novarica Group. “This increases the urgency for BNPL-focused fraud solutions that can accurately verify identities and detect anomalies while not putting barriers in front of good prospective customers.”
“Innovating in the payments category must balance security, convenience, and choice for consumers. Outseer has made investments to safeguard all consumers however they want to shop, and to enable the ecosystem to serve this mission,” said Taussig.