The e-retailer reports a $126 million net loss, stemming from a $640 million year-over-year increase in spending in the quarter on technology and content ...
The deal is good for five years.Edison, N.J., May 13, 2013 – ReD (http://www.redworldwide.com), a leading provider of fraud prevention and payment services, today announced that Rakuten.com Shopping formerly Buy.com has signed a five-year agreement for ReD’s real-time fraud prevention service, ReD Shield. The US business of Rakuten, among the top three e-commerce marketplace companies in the world with over 116 million products from over 45,000 shop owners, Rakuten.com Shopping will utilize ReD Shield to help reduce the time and costs associated with manual reviews, encouraging a positive buying experience and repeat business.
Commenting on the announcement, ReD North America President Kevin Sprake said, “Our ReD Shield service is designed to support the success of customers like Rakuten by protecting revenues and enhancing the customer experience. Holding down false positives and reducing the need for manual reviews are key criteria against which we assess the value of our service and this focus will let Rakuten continue to grow their business despite potential fraudulent activity.”
Rakuten.com Shopping serves over 18 million customers and provides access to a broad selection of goods and merchants from on their website. Rakuten.com Shopping's focus is on delivering more than just a transactional experience to consumers, instead making connections between merchants and buyers via its ‘discovery’ shopping, video content and reviews. Rakuten.com Shopping believes that ecommerce should be entertainment and fun for customers. High manual review rates and high authorization decline rates on items such as electronics and baby goods, items often targeted by fraud, were threatening the company’s ability to provide the fun experience they were promising and this drove them to turn to ReD for support.
“Rakuten.com Shopping prides itself in going above and beyond for our customers and merchants,” said Rakuten.com Shopping President Roger Andelin. “High manual reviews slow down the buying process and interfere with our ability to increase customer loyalty and build sales. ReD understands our business. They are flexible and had us up and running in just a few weeks. We’ve already seen a dip in our operational expenses and feel confident that we can now sustain a fun and entertaining buying experience for our customers.”
A real-time fraud prevention solution tailored to the unique requirements of e-commerce merchants, ReD Shield minimizes payment fraud while reducing the need for costly manual reviews. ReD Shield provides instant decisioning (accept/challenge/deny) and utilizes multiple advanced technologies to ensure that genuine transactions are processed while fraudulent ones are identified and isolated.
ReD is a world leader in fraud prevention and payment services. Our solutions are present at every stage of the payments value chain, supporting merchants, PSPs, issuers and acquirers, processors and switch networks in the fight against fraud.
ReD is different. We are flexible and independent of any card scheme. We protect billions of transactions across multiple channels and payment types. Our proprietary technology is underpinned by world-class fraud and risk analysts and pooled data from more than 190 countries. Each customer receives a tailored, responsive and highly effective solution with day-to-day support from a dedicated, expert analyst.
ReD serves customers from multiple sectors and across six continents from offices in Australia, China, Dubai, South Africa, the United Kingdom and the United States, and through partners around the globe. For more information, visit http://www.redworldwide.com.
About Rakuten.com Shopping
Rakuten.com Shopping is a global e-commerce site that connects buyers and sellers in a dynamic marketplace and thinks of shopping as entertainment—complete with sharing and discovery functions, great prices, fun experiences and convenience. Rakuten.com Shopping provides over 16 million products in 24 categories and includes a network of over 5,500 small and large business shop owners. Rakuten.com Shopping was founded as Buy.com in 1997 and acquired by Rakuten Inc. in May 2010. Its 175 employees are headquartered in Aliso Viejo, California.