Signifyd and VTEX partner to enforce ecommerce fraud protection in LATAM

VTEX customers now have access to Signifyd's Commerce Protection Platform module through the VTEX App Store. Consequently, they will gain access to installing a plug-in within the VTEX ecosystem and optimise their transactions and protect their profits. Through the partnership, customers will have quick access to Signifyd solutions, which are fully complies with all the programming and review parameters of the VTEX platform.

How the Signifyd tool works in detecting fraud?

By integrating Signifyd solutions, VTEX clients will be able to automate the review of transactions within their ecommerce platforms. Apart from fraud detection, users of the platform will be able to access technology that has increased approved orders by an average of 5% to 9%, according to the joint company press release.

Signifyd’s machine learning model is constantly learning, adjusting to new tactics and techniques deployed by professional scammers and fraud networks. The tool can distinguish between fraudulent and legitimate transactions, it detects policy abuse and is able to offer a financial guarantee on approved orders against all types of chargebacks.

VTEX partnership in the greater expansion strategy for Signifyd

This strategic alliance is part of Signifyd’s expansion plans in Latin America. The company’s April 2021 funding round of USD 205 million is fueling expansion of its product, customer success and data science teams, as well as its engineering teams, the press release informs.

Fraud and ecommerce grow in tandem in LATAM

Latin America foresees further growth in online commerce. According to a recent ResearchandMarkets study, the social commerce industry in Latin America is expected to grow by 34.4% on annual basis to reach USD 6205.8 million in 2022. The social commerce industry is expected to grow steadily over the forecast period, recording a CAGR of 28.9% during 2022-2028. The social commerce GMV in the country will increase from USD 6205.8 million in 2022 to reach USD 27370.6 million by 2028. 

These numbers related to social commerce can be corroborated with Statista data forecasting that, considering that just in 2020, retail ecommerce sales in Latin America were estimated to amount to approximately USD 85 billion, nearly 35% more than reported in the previous year before the COVID-19 pandemic. Statista forecasts that this figure is expected to rise to about USD 160 billion by 2025.