RETHINK Retail’s Solution Spotlight shines a light on industry vendors and what makes them distinct.
This vendor spotlight is on Signifyd, the world’s largest provider of guaranteed fraud protection.
Signifyd enables online retailers to provide a friction-free buying experience for their customers. It leverages big data, machine learning and domain expertise to provide a 100 percent financial guarantee against fraud on approved orders that later turn out to be fraudulent. This effectively shifts the liability for fraud away from retailers, allowing them to increase sales and open new markets while reducing risk.
To learn more about Signifyd, visit: www.signifyd.com
The biggest challenge for grocery is re-imagining the business model, the pressure points for a e-commerce first transaction journey. Right? And so it could be things as simple as when you have a card swipe in a store, the retailer has no liability for fraud and chargebacks. But for all transactions starting online, if it ends up being fraud, the retailer has to eat that cost. All the products, lost revenue, all of it.
Grocery has to hopefully leapfrog and do better than that as they adjust to this rapid shift to digital commerce. It starts with knowing the identity and intent behind every checkout attempt. So we’re in the checkout flows of Walmart, Albertsons, Rite Aid, and so on. So 98% of the time or better, we’ve seen a specific shopper before. We don’t have to guess if they are legitimate or fraudulent. If they’re high lifetime value or abusive and lossy, we have that fact pattern already.
So it means from a retailer’s perspective, you don’t have to do the digital equivalent of protecting your products behind a glass lockbox with keys. You can actually take advantage of our data and merchant network to enable really frictionless customer experiences around things like curbside pickup. So we give that insight to the retailer at the moment of checkout in split seconds every time. We integrate with all the major eCommerce platforms, all the major payment processors, and gateways, and by sitting in that checkout flow, make sure we say yes to all good orders and only keep out what is truly fraud. So our average merchant sees five to 8% higher conversion rates. And depending on the category they’re in, or what the state of their traffic is before us, we routinely see double-digit conversion rate improvements as well.
Our founding team came out of PayPal. We’re headquartered in Silicon Valley. We get to tap into some of the world’s best machine learning and data science folks and payments experts. That then gets married by this massive scale of data. And we’ve been doing it for 10 years, so there’s also this cumulative learning effect. You put all of that together, and the upshot is we can look at non-intuitive signals like the ratio of the basket size of your order to the value of the house it’s theoretically going to.
That’s a very blunt example, but it brings to life the derived intelligence we can bring to every single checkout attempt. I think the other thing we try to bring to the industry is we absorb the cost of the chargebacks of the fraud. But that lets the retailer, the decision-maker to sleep better at night, knowing they can enable these Amazon great experiences without leaving them exposed to a huge amount of fraud losses.