US-based payments giant Mastercard has forged an alliance with machine learning fraud platform Ravelin to develop an improved fraud prevention solution for quick commerce merchants.
The partnership is driven by the increasing trend in online grocery orders, which grew by over 50% during the Covid-19 pandemic. The trend is estimated to grow this year, stated a research from McKinsey.
In addition, consumers’ growing preference for shopping online for their daily needs has increased the viability of quick commerce merchants that provide speed and convenience.
However, merchants have to face challenges while authenticating the identities of their consumers and dealing with new fraud threats in real time.
Under the latest tie-up, Ravelin will use Ekata’s digital identity verification tools and Ethoca’s knowledge in real-time fraud to allow merchants to authenticate a consumer’s identity.
Ravelin will leverage Ekata’s transaction risk API to confirm the users’ identity when they make their first transaction.
In the next step, Ekata will give a risk score to help businesses make more precise decisions.
Once the transaction is completed, Ravelin will enable merchants to mitigate fraud and avoid chargebacks with Ethoca Alerts and Ethoca Consumer Clarity.
Mastercard executive VP of identity solutions Chris Reid said: “We all want secure and seamless experiences.
“Ravelin shares our longstanding commitment to building and reinforcing trust in the digital economy.
“By bringing our capabilities together, we can help quick commerce merchants better assess fraud before a payment is authorised, improving the checkout experience.”
Last month, Mastercard chose software company Netcetera as its digital-first partner.
Called Engage, Mastercard’s global partner network is designed to help customers connect with various technology and fintech partners to deploy Mastercard Digital First products.