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Magento’s leap forward in payments is guaranteed fraud protection’s latest endorsement

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Magento Commerce’s launch of Magento Payments, with guaranteed fraud protection, is the latest sign that ecommerce retailers are all-in on the need to build better customer experiences beyond the buy button.

The seamless payment platform combines technology from Signifyd, Braintree Payments and PayPal Checkout to streamline the payment process while providing consumers with flexible payment options and providing merchants with a 100 percent financial guarantee on any approved order that later turns out to be fraudulent.

“For merchants, payments have become an operationally complex process with multiple technologies and service providers underpinning every transaction, including merchant banks, payment gateways, issuing banks, payment processors, and enterprise fraud management tools,” Magento, an Adobe company, said in today’s blog post announcing Magento Payments. “Magento Payments was designed to address these challenges head on.”

Magento Payments will be widely available through self sign-up beginning in the first quarter of 2019, the company said. Magento is currently offering the platform through an Early Access Program.

Magento Payments offers consumers more choice and merchants more security

By incorporating Signifyd’s Fraud Protection into its payment system, Magento has doubled down on the two companies’ ability to enable their merchants to provide their customers with a better buying experience.

Signifyd was already natively available in the current Magento Commerce platform. The inclusion of Signifyd in Magento’s marquee payment system strengthens the partnership between the two companies and provides merchants representing $155 billion in merchandise sales an opportunity to make online buying better for hundreds of thousands of consumers.

“As ecommerce continues to evolve and transform commerce, consumers are looking for better online buying experiences, from the moment they search for a product until well after they click the buy button,” says Skye Spear, Signifyd’s head of sales & partnerships. “By providing real-time order approvals and ensuring that legitimate orders won’t be falsely declined, Signifyd helps merchants serve customers with the speed and accuracy they’ve come to expect in the era of same-day shipping.”

The intensifying focus on customer experience throughout the buying process is driving a broader embrace of the guaranteed fraud model. The signs have been growing for months.

Every major ecommerce platform now offers merchants a guarantee model, often provided by Signifyd.

Guaranteed fraud protection is enjoying mainstream adoption

Leading venture capitalist Mary Meeker recognized the importance of a guarantee model in the 2018 Internet Trends report, in which she listed the eight key functions a modern ecommerce enterprise must master to be successful. Fraud prevention was one of the areas and Meeker presented Signifyd as the tool that would get the job done for merchants.

Just last week, analysts Frost & Sullivan recognized Signifyd’s fraud protection model as the industry leader in a 15-page report that repeatedly referred to Merchant Fraud Prevention as a key piece of building a memorable customer experience.

“Signifyd has demonstrated a clear ability to improve business performance by reducing fraud and increasing the customer experience by removing friction in the shopping experience,” the report said.

Magento, of course, prides itself on the experiences that its Magento Commerce platform enables merchants to build for customers. When it announced Magento Payments in its blog post, the company explained that the feature will allow merchants to accept a variety of payments, including those specific to particular localities or regions.

As the Magento post points out, with the rise of digital wallets and mobile payments, consumers expect flexibility when buying online. Magento Payments allows consumers to pay the way they want to and turns to big data, machine learning and a liability shift to ensure that fraud reviews are handled efficiently, removing friction from the buying experience.

Payments just became less complicated for online merchants

The payment system integrates technology from Braintree Payments, PayPal Checkout and Signifyd into the Magento Commerce platform. For online retailers, that streamlines “the payment and risk management process directly from the Magento Admin panel. There are no third-party accounts to manage, no need for local or regional payments expertise and no subscription costs,” Magento’s post said.

And with the fraud-liability-shift feature, retailers know that they will be made financially whole for chargebacks and other fraud costs on approved orders that later turn out to be fraudulent. That leaves retailers to focus on expanding their businesses and building the kind of better customer experiences that are the key to success in modern retail.

Contact Mike Cassidy at [email protected]; follow him on Twitter at @mikecassidy.


Mike Cassidy

Mike Cassidy

Mike is the head of storytelling at Signifyd. A former journalist and a retail geek, he covers ecommerce and the way technology is transforming digital commerce. Contact him at [email protected].