Yuno partners with Fraugster

This partnership aims to help businesses reduce fraud losses and the total cost of managing fraud. Fraugster strengthens Yuno’s offering by applying artificial intelligence (AI) trained on global payment data to make more accurate decisions to boost approval rates. Innovations in machine learning and AI also allow Yuno merchants to go-live immediately without historical data.

According to the officials, Yuno and Fraugster are building a solution that will enable merchants to make online checkout quick, easy, and secure.

Fraugster is a payments intelligence company that helps the ecommerce ecosystem to minimise fraud. It helps customers solve multiple use cases by giving them access to various, interoperable products via one integration.

Yuno’s Ultimate Checkout enables merchants to manage multiple payment methods with only one integration. Their solution also allows online businesses to customise their checkout, monitor acceptance rates, access reporting tools, and utilise multiple fraud managing features and smart routing.

Fraud in Latin America’s ecommerce space

Companies of all sizes across Latin America continuously face challenges in managing multiple payment methods and fraud detection tools for accepting online payments leading to fragmentation, complexity, and high costs.

According to the latest data from the Merchant Risk Council (MRC), Latin American merchants experience the highest average chargeback rates (3.8% vs 2.6% in Europe) and the highest order rejection rates (6.9% vs 2.8% EU) of any global region. The same report shows that 3.5% of ecommerce transactions in Latin America during 2021 were fraud attempts, higher than the global average of 2.6%. As the rapid adoption of online payment systems has enabled the rapid rise of online retail sales, leading to a rise in fraudulent activities, there is a need for tech-enabled platforms and global payment service providers to allow merchants to access more consumers through local payment methods.

Moreover, Latin America is one of the territories most affected by cyber-attacks. In 2019, there were 42 malware attacks per second in Latin America, an annual growth of 13%. Likewise, 6.4 mobile malware attacks per minute were detected during 2021.

Defining ecommerce in Latin America’s market

Hit hard by the pandemic, Latin America went through major changes in online sales during 2020–2021, and as Alain Delcourt, Managing Director of BoaCompra by PagSeguro, describes in an article, new opportunities are now arriving.

Latin America has a tremendous opportunity for growth in both the number of new digital buyers and how much those buyers spend online on average. Forecasts call for the number of digital buyers to increase from 172 million to 435 million by 2031, while digital spend per buyer is expected to increase roughly 3.5-fold over the same period.

However, when it comes to local payment methods, Latin America may be a complex, vast, contradictory landscape. While traditional methods are still widespread, each country is undergoing its own financial innovation process, with Brazil leading the way with solutions such as instant payment method Pix, already used by 60% of the country’s banked citizens and showing a 41% monthly growth in transaction volumes since its launch in November 2020.

To find more about Fraugster, check their profile in our company database.