Stripe Announces the Acquisition of Card Authentication Tech Provider Bouncer

Stripe, a major payment processing company, announced that it has bought Bouncer, a company building card authentication technology to reduce fraud during online transactions.

Bouncer’s team and technology will join Stripe to further strengthen the capabilities of Radar, Stripe’s powerful, machine-learning-based fraud prevention tool.

Bouncer’s card scanning and risk technology is used to help online businesses reduce fraud and authenticate cards. Bouncer will be integrated into Stripe Radar, a fraud prevention tool whose machine learning models are trained on purchases made at millions of companies around the world every day. 

Radar is fully integrated into Stripe’s payments platform. When it identifies a specific transaction as high risk, Radar will use Bouncer’s card scanning and verification technology to confirm that an end customer has a legitimate card in their hands at the time of the purchase. This extra layer of protection will reduce false positives among potentially high risk transactions.

Simon Arscott, business lead for Stripe Radar, commented: “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.”

“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 and further increase revenue for millions of businesses around the world who rely on Stripe”, he added.

Will Megson, CEO of Bouncer, said: “I’m excited that we’ll be able to scale our advanced card-verification technology across the Stripe network to help businesses grow their revenue while further reducing fraud behind the scenes. The same signals that Radar learns from will make Bouncer more effective, and Bouncer will, in turn, make Radar more effective. We couldn’t be more excited to join the Radar team.”

Fazzaco earlier reported Stripe announced that it has launched business in the United Arab Emirates​, which means Stripe's first expansion into the Middle East.