PaymentWorld, a payment processing company specializing in credit card processing and retail point of sale terminals, agreed to a new partnership with gaming technology and fraud prevention company Xcaliber.
The partnership will combine PaymentWorld’s real time, anti-fraud offerings that protect merchants against revenue loss and other types of fraud with Xcaliber’s own solution to fight against friendly fraud. Xcaliber’s solution claims to prevent almost half of fraudster, as well as friendly fraud, chargebacks.
The two companies are expected to launch a software platform that will bring together their combined strengths for the benefit of merchants. Although no specific details are available at this time, both companies list innovation as part of their core mission. It’s unclear how that might manifest itself with this new venture.
In addition, it remains to be seen if this partnership is a harbinger of things to come. As more and more payment processors get into the chargeback guarantee game — it’s possible the industry is in for a wave of consolidation. Independent platforms may begin to seek economies of scale and synergies in order to combat the advantage payment platforms have from their access to huge amounts of transaction processing data.
Either way, in an increasingly fluid fraud prevention landscape, we can probably expect to see more and more of these kinds of mergers coming in the near future.
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