October 20, 2017
It was a busy quarter for deals in FinTech. According to the latest report from FT Partners, banking (including P2P lending), and payments scored the most deals in the period. With innovation in facilitating convenient banking services, comes ever-accelerating fraud risk and a considerate cost at which security breaches come to companies. No wonder forward-thinking teams continue to secure financial support for advanced security solutions, and payments behemoths continue an aggressive push to make payments convenient.
On October 17, 2017, Feedzai announced it has raised $50 million in its Series C financing round from an undisclosed investor with participation from existing investor Sapphire Ventures.
This new funding brings the total venture capital raised to $82 million from nine major investors, including Oak HC/FT, Capital One Growth Ventures, Citi Ventures and more.
Founded in 2009 and headquartered in San Mateo, CA, Feedzai is a leader in using artificial intelligence to empower enterprises to manage risk and fight fraud in real-time Feedzai's machine learning technology and its omnichannel fraud prevention solutions serve customers that transact in virtually every country in the world, across numerous use cases for leading banks and merchants.
Until now, banks have used solutions based on verticals, Nuno Sebastiao, Co-founder & CEO of Feedzai, said to TechCrunch in an interview. "The fraud solution you have for an ATM wouldn’t be the same fraud solution you would use for online banking which wouldn’t be the same fraud solution would have for a voice call center.
This was due for a while. Now, Venmo users can pay at all online locations that accept PayPal – Pay with Venmo becomes ubiquitous. Also, every merchant that has Braintree's payment gateway can enable Venmo. Suddenly, everyone from Forever 21, online sellers, to charities and hundreds of apps will have millennials paying via Venmo now. Over 2 million online US retailers can now accept Pay with Venmo.
The genius of the Braintree acquisition is also fully apparent now.
This underscores the growing need to nail merchant payments. As P2P payments had been a big focus on the past with Venmo, merchant payments will be the big focus in next few years.
Not to forget, there's also PayPal’s consumer purchase protection. The ability to split bills later on Venmo and every transaction shared on Venmo, which doubles up as a payments social network of sorts, is beautiful.
IBM Security and Ponemon Institute are pleased to release the 2017 Cost of Data Breach Study: Global Overview. According to the whitepaper, the average total cost of data breach decreased from $4 million to $3.62 million. The average cost for each lost or stolen record containing sensitive and confidential information also significantly decreased from $158 in 2016 to $141 in this year’s study. However, despite the decline in the overall cost, companies in this year’s study are having larger breaches. The average size of the data breaches in this research increased 1.8%.
The average per capita cost of a data breach was $225 in the United States and $190 in Canada. The lowest cost was Brazil ($79) and India ($64). The average total organizational cost in the United States was $7.35 million and $4.94 million in the Middle East. The lowest average total organizational cost was in Brazil ($1.52 million) and India ($1.68 million).