The Chinese e-commerce giant will have $8 billion in cash after its IPO as well as valuable stock it can use for acquisitions. The ...
FlowPlay’s OurWorld.com, a virtual playland with more than 5 million users worldwide and about $5 million in real-money sales, has stepped up its payment security game with risk management tools from Adyen, FlowPlay CEO Derrick Morton says.
FlowPlay Inc.’s OurWorld.com, a virtual playland with more than 5 million registered users worldwide and about $5 million in real-money sales, has stepped up its payment security game with risk management tools from Adyen Inc., FlowPlay CEO Derrick Morton says.
In February, Seattle-based FlowPlay switched its payment processing to Adyen so it could use the Adyen Internet Payment Solution to process payments from European customers in their local currencies, including euros for players in Germany and British pounds for players in the U.K., Morton says.
“Then we realized that Adyen also had a more sophisticated anti-fraud system and a greater ability to manage risk across our customer base,” he adds. Adyen, based in Amsterdam, Netherlands, recently opened a U.S. office in Boston.
FlowPlay’s former payment processing system only allowed the company to check three pieces of information-a customer’s billing address, credit card account number and credit card identification number, Morton says. With the Adyen system, FlowPlay can now check 22 parameters, such as if the same credit card is used several times in the same day and if it has inaccurate address or account information, and the retailer can set up business rules that score each parameter for its level of risk. “If any total score for a transaction adds up to 100, then we just don’t accept it,” he says.
Since using the Adyen system, FlowPlay has been able to accept a higher percentage of good transactions, while the system has also spotted high-risk transactions that in the past the retailer probably would have accepted, Morton says.
He adds that the he expects the system to play an important role in the growth of OurWorld.com, which gets about 250,000 visitors a day from young consumers who, on average, spend about $1 per month on the site’s play currency. They use the currency for playing online games and buying virtual goods, such as clothing and furniture, to outfit their personal avatars and virtual accommodations.
FlowPlay, which launched in January 2007, expects to do almost $6 million in sales this year, Morton says. The company operates with $5 million in venture capital, with its major investor being Intel Capital.
Adyen promotes itself as providing a full range of international payment processing and risk management technology and services for small as well as large companies, says Peter Caparso, president of Adyen’s North America operations.
The company’s services include real-time payment transaction data reports through an online dashboard, and hosting payment pages for retailers, an option that offers tokenization of customer credit card account data. Tokenization maintains payment card account data off of a retailer’s infrastructure while providing data tokens that let retailers access customer data as needed.