PayPal has announced the purchase of the startup company Simility, which makes use of machine learning to combat financial fraud. Simility works by using advanced personal identification technologies to identify the behavior of each user. The technology assigns a trust rating for each operation and builds a user profile. Suspicious transactions that do not match a user profile are flagged and block the account. Simility will also provide fraud detection services to merchants accepting payments through electronic wallets. According to PayPal’s executive director, the company hopes that this technology will also help provide small companies with analysis tools that only large aggregators currently have.
PayPal is purchasing Simility for USD 120 million.