Nuvei Launches Groundbreaking Machine Learning Solution to Boost Risk Management

Rhea-AI Summary

Nuvei Corporation (Nasdaq: NVEI), a leading payment platform, has launched an advanced risk management model for its Instant Bank Transfer service in North America. Utilizing machine learning, the new model enhances fraud detection by analyzing transaction factors such as account age and value. Key benefits include improved customer retention, smarter payment acceptance, reduced risks, and lower costs associated with fraud. The detection rate for fraudulent transactions is expected to improve by 30% from launch, with ongoing enhancements anticipated as the system learns from more data.

Positive

• Integration of a new machine learning risk management model to reduce fraud.
• Expected 30% improvement in detection of fraudulent transactions at launch.
• Improved customer retention and smarter decision-making for accepting payments.

Negative

• None.

Businesses Offering Instant Bank Transfer to Benefit from Enhanced Protection Against Fraudulent Transactions

MONTREAL, June 16, 2022 (GLOBE NEWSWIRE) -- Nuvei Corporation (“Nuvei” or the “Company”) (Nasdaq: NVEI) (TSX: NVEI), tomorrow’s payment platform, announces today the launch of a new risk management model underpinned by cutting-edge machine learning technology for its Instant Bank Transfer product in North America.  

A pioneering algorithm has been integrated into a new risk engine for the extremely popular account-to-account payment method. Factors such as account age, transaction value, and balance usage will be analyzed by the engine to determine the risk level that a transaction is fraudulent and augment existing levels of security. There will be no impact on consumer experience or businesses’ existing single integration with Nuvei.

The machine learning model extracts complex patterns to improve the identification of fraudulent activity and reduce false positives where legitimate transactions are declined. Benefits of processing vast amounts of data with no latency in this way include:

• Improved customer retention as legitimate consumers are less likely to have their transactions declined
• Higher acquisition as the model makes smarter decisions on accepting payments from new customers
• Reduced risk and higher confidence when transactions are accepted or rejected
• Lower costs as financial penalties associated with fraudulent activity are minimized

By using this decision engine merchants will see improvements as high as 30% in detection of fraudulent transactions, including friendly fraud, from the launch day. Nuvei expects this score to keep improving as the model has been designed to auto-improve its ability to identify bad actors as it processes more data and identifies deeper relationships.

Nuvei Chair and CEO Philip Fayer commented on the announcement: “We’re really excited to bring this new solution to our merchants to help accelerate their business. We continue to invest in our AI and data management. We are constantly innovating our products to develop features that reduce fraud and maximize revenue for our customers through customized solutions that meet their exact needs. This is only the beginning and we can’t wait to announce other game-changing innovations in the near future.”

About Nuvei

Nuvei (Nasdaq: NVEI) (TSX: NVEI) is tomorrow’s payment platform. Designed to accelerate customers’ business, Nuvei’s modular, flexible and scalable technology allows leading companies to accept next-gen payments, offer all payout options and benefit from card issuing, banking, risk and fraud management services. Connecting businesses to their customers in more than 200 markets, with local acquiring in 45+ markets, 150 currencies and more than 550 alternative payment methods, including cryptocurrencies, Nuvei provides the technology and insights for customers and partners to succeed locally and globally with one integration.

For more information, visit www.nuvei.com

FAQ

What is Nuvei's new risk management model for Instant Bank Transfer?

Nuvei has launched a new risk management model utilizing machine learning to enhance fraud detection for its Instant Bank Transfer service.

How does Nuvei's machine learning model improve transaction security?

The model analyzes factors like account age and transaction value to accurately assess transaction risk, reducing false positives.

What are the expected benefits of the new risk management model from Nuvei?

Key benefits include improved customer retention, higher acquisition rates, reduced risks in transactions, and minimized costs associated with fraud.

How much improvement in fraud detection is expected with Nuvei's new model?

Nuvei expects an improvement of up to 30% in the detection of fraudulent transactions upon launch.