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Stripe Bouncer

Stripe grabs fraud detection start-up Bouncer


Fintech Stripe has acquired anti-fraud authentication tech Bouncer, into which it will integrate its card authentication technology Stripe Radar.

17th May 2021
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Making use of its $600m investment earlier this year, at a $95bn valuation, payments fintech Stripe has acquired card authentication company Bouncer to bolster its authentication technology.

The acquisition has landed not long after it became the highest-valued private company to come out of Silicon Valley. And with Bouncer being modelled around reducing fraud during online transactions, the acquisition is a tight fit for the payments tech.

Aside from both Bouncer’s technology and the team being obtained, no terms have been revealed by the company. 

“Bouncer is a great tool for modern internet businesses,” said Stripe Radar business lead Simon Arscott. “It allows them to quickly identify stolen cards, while also ensuring legitimate customers can transact without being blocked.” 

According to the fintech, Bouncer’s advanced card scanning technology reduces fraud by confirming card authenticity and will augment Stripe Radar – Stripe’s machine-learning-based fraud prevention tool.

The plan is for Bouncer’s team and tech to join Stripe to further enhance the capabilities of Radar. Bouncer’s card scanning and risk technology is used to help online businesses reduce fraud and authenticate cards, and will be fully integrated into Radar and Stripe’s payments platform. 

When Radar identifies a specific transaction as high risk, it will use Bouncer’s card scanning and verification technology to confirm that an end customer has a legitimate card in their hands at the time of the purchase. The extra layer of protection will reduce false positives among potentially high-risk transactions.


When an incoming transaction is flagged as high-risk, rather than blocking the purchase entirely, a business can use Bouncer to verify that a card being used is legitimate. Bouncer does this by requesting live photos of the card. 

Pictures can be taken on any smartphone, and the scanning technology supports all payment card types, card designs and lighting environments, including low light. Next, Bouncer performs a risk assessment (in under 400 milliseconds, it claims) to validate if the card is real or stolen. 

All data handling is PCI and GDPR-compliant. If the card is stolen, the transaction will be rejected. If real, the purchase will be approved and completed. The process should take under a second, providing a seamless experience for legitimate customers while hardening defences against the fraudster, claims Bouncer.

“I’m excited that we’ll be able to scale our advanced card-verification technology across the Stripe network to help businesses grow their revenue while further reducing fraud behind the scenes,” said Bouncer CEO Will Megson. 

“The same signals that Radar learns from will make Bouncer more effective, and Bouncer will, in turn, make Radar more effective. We couldn’t be more excited to join the Radar team.”

Stripe Radar

Stripe Radar has blocked over $1bn in fraudulent transactions since launch for Stripe users like SkipTheDishes, Slice, and TeeSpring, saving them money and eliminating the administrative headaches of disputed transactions. 

With underlying technologies based on machine learning, Radar benefits from Stripe’s global scale and compounding network effects. For example, Radar blocked 60% more fraud in 2020 than in 2019, saving users hundreds of millions of dollars collectively.

According to Stripe, its global scale means that when a business receives a new payment, there is an 89% chance Radar has seen that credit card before. Starting this month, Radar Analytics Center will give enterprise users more insight into false-positive rates, blocked transactions, and dispute trends, making it even easier for businesses to align their fraud strategy to their business model.

“We’re thrilled to welcome the Bouncer team, and their years of experience building payment authentication software for businesses, to Stripe and to enable their technology for Radar users,” said Arscott. “With the addition of advanced card scanning capabilities, Stripe Radar will be able to block more fraud and further increase revenue for millions of businesses around the world who rely on Stripe.”

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