Vesta secures $125m for payment fraud AI

Fraud payment solutions provider Vesta announced today in a press release they have secured an investment of $125m from private equity firm Goldfinch Partners bringing Vesta’s total amount raised to over $145m.

The fraud payment solutions provider said the capital will be used to fund further growth of the business and continue the global deployment of its fraud protection and e-commerce payment solutions and product suite.

Ron Hynes, CEO of Vesta explained how the investment will help: “Since taking over as CEO in July of last year, I have refocused the company on product development, market expansion, and technology enhancements. This capital infusion from Goldfinch Partners provides us the fuel to accelerate our efforts,”.

Sean Collins, managing partner and co-founder of Goldfinch Partners said: “Vesta’s CEO Ron Hynes and his team have broadened the firm’s product range and entered new markets, giving new life to a pioneer and longtime leader in the card-not-present payments space,”.

The fraud payment solutions provider offers e-commerce companies accurate real-time fraud prevention through using data science and machine learning from over 25 years of different industry data. and have a unique offering that if they’re wrong, they cover the cost of the fraudulent activity.

This means customers of the platform don’t run risks with fraudulent activity and can lower costs associated with spotting, tracing, and returning funds from fraudulent activity.

Shift Processing reported that in 2018, $24.26 billion was lost due to credit card fraud worldwide.

As part of Vesta’s services they gather and leverage proprietary global customer data to identify and record known sauces of fraud through their patented fraud technology increasing the accuracy rate of spotting fraudulent transactions with customers.

This has led to globally known brands becoming customers of Vesta including AT&T, EE, T-Mobile, Vodafone, and Western Union and having e-commerce platform extensions including Stripe, Shopify, WooCommerce, Salesforce, and SAP on their roster.

Vesta tracks payments across a range of devices and payment channels including web, mobile phones, landline phones, tablets, debit cards, credit cards, prepaid cards, and Apple Pay, while offering a pre-authorization decisioning service that protects transactions during the ecommerce checkout process.

Vesta’s press release explains that as more people seek safe ways to pay amid the COVID-19 pandemic, keeping merchants and consumers safe online has never been more important giving the fraud payment solutions provider an opportunity to gain market share for fraudulent payments.

Vesta has a unique product offering that if they’re wrong on any fraudulent activity they cover the cost of the fraud meaning the business gets insurance on any fraud committed and that on average, its company solutions raise transaction approval rates by 10%.

Hynes explained how the funding means the company is well-positioned for the future by saying: “The fact that we were able to complete this funding in the current environment is confirmation of the market need for our solution and a tremendous nod to our talented team. I couldn’t be more pleased to have Sean Collins, Bill McNichols, and the entire Goldfinch team joins us in this exciting ride.”

Vesta has recently expanded its operations by opening an office in Singapore which is being led by Visa veteran Shabab Muhaddes with the funding helping the planned Asia expansion.