Alipay to expand cross-border sales via CyberSource fraud management collaboration

Tuesday 19 November 2013 00:17 CET | News

Alipay, an affiliate of Alibaba Group, and an online payment service in China, is using CyberSource Decision Manager and Managed Risk Services to help reduce and control fraud rates for its merchants.

The company has improved fraud management across the entire Alibaba’s ecommerce portfolio (which includes AliExpress, Taobao and Taobao’s external merchants) by working with CyberSource, a Visa company and a provider of ecommerce payment management services, to tailor its fraud management capabilities.

The partnership, which started with AliExpress in 2010, has enabled Alipay to build on its existing in-house fraud management capabilities, consequently enhancing its merchant services. By utilizing CyberSource Decision Manager, AliExpress has maintained low fraud rates for their cross-border B2C business.

China’s ecommerce market is expected to exceed USD 539 billion by 2015 and is set to overtake that of the US this in 2013 to become the world’s largest market by consumer spend. According to Visa, transaction security is a key concern for 56% of Chinese consumers surveyed when making online payments.

In addition to Decision Manager, CyberSource also provides Alipay with Managed Risk Services. CyberSource’s Managed Risk Services combines Decision Manager with fraud consulting services to assist and optimize fraud management operations via performance monitoring.

CyberSource Decision Manager features the World’s Largest Fraud Detection Radar, helping Alipay to pinpoint fraud faster, more accurately and with less manual intervention. This is achieved by screening inbound orders against data and correlations from more than 60 billion transactions processed by Visa and CyberSource annually. The transaction data is supplemented by 260 validation and correlation tests, which enable the solution to effectively expand the depth and breadth of visibility in transaction patterns.

Alipay (China) Network Technology is an independent third-party payment platform, and an affiliate of the Alibaba Group. Launched in 2004, Alipay provides an escrow service and partners with more than 170 financial institutions to provide payment solutions for and, as well as more than 460,000 online Chinese merchants. Alipay now supports more than 800 million registered users and processes over 105.8 million transactions daily, totaling a monetary value of over USD 3 billion.

CyberSource, a wholly-owned subsidiary of Visa, is a payment management company. Over 400,000 businesses worldwide use CyberSource and Authorize.Net brand solutions to process online payments and streamline fraud management. In recent news, CyberSource has entered an agreement with the commercial bank in Laos, Banque Pour Le Commerce Exterieur Lao (BCEL). The agreement enables BCEL to expand its business, both locally and regionally, by offering online payment services to its merchant customers.

Check out our Cross-border Ecommerce Research section here for more info on country-specific ecommerce facts & figures, preferred payment methods, risk and fraud, as well as ecommerce legislation & regulation for mature and emerging markets.

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Keywords: Alipay, cross-border, Cybersource, fraud management, Decision Manager, Managed Risk Services, Fraud rates, ecommerce payment management services
Categories: Payments & Commerce
Countries: World
This article is part of category

Payments & Commerce