The global artificial intelligence (AI) market is forecast to make up $54 billion by 2032, according to PYMNTS. Berlin-based payment intelligence startup Fraugster has launched tools based on AI designed to help eCommerce retailers and payment services reduce fraud and maximize their revenue. This is also important in terms of chargeback prevention.
Fraugster’s BNPL Risk Model
Fraugster has recently introduced its product called “Alternative Credit Decisions.” The product enables Buy Now Pay Later (BNPL) and Enterprise merchants to approve more customers while mitigating credit risk.
The company aims to help its customers enjoy more accurate decisions and lower costs. Currently, BNPLs and enterprise merchants use credit bureau checks for added confidence and approval, as well as for making a fee payment for checks.
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What To Expect from Fraugster’s BNPL Product
With European retailers facing the challenge of protecting customer data, fighting financial crime and dealing with E.U. and national regulations, Fraugster’s AI tool steps in to help merchants. The offered solution is a new module intended to prevent criminals from accessing BNPL services using fake, stolen or synthetic identity documents.
Christian Mangold, CEO of Fraugster, says that their mission is let customers feel confident about trusting the person they’re approving to pay back the borrowed amount. Mangold further notes they’re already registering positive results with trial customers. So, they feel confident that their service will allow the eCommerce ecosystem to approve more customers with greater accuracy.
Fraud Prevention with Fraugster’s BNPL AI Tool
Fraugsters newest AI tool is designed to enrich BNPL credit scoring models, providing more than 100 attributes, giving a more accurate picture of a borrower’s true credit risk.