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dLocal releases three fraud management tools, expands to three new countries

dLocal, an Uruguay-based fintech offering cross-border payments technology for global merchants, announced releasing three new fraud management tools for its tech stack Tuesday, according to a press release.

The news precedes today’s announcement, which details expansion for the company into Thailand, El Salvador and Guatemala, according to a press release.

These countries represent more than 93 million consumers and a total e-commerce revenue of $26 billion, according to the release. But while these numbers justify dLocal’s movement into the countries, the company’s fraud management launch also helps to explain the timing for entry into these markets.

Those tools include:

  • Smart Defense, a machine learning-powered prediction engine that inspects transactions at a high volume
  • Defense Manager, which offers merchants flexibility in their risk tolerance through API-enabled rulesets
  • Chargeback Guarantee, a service which delegates all fraud management responsibilities and costs to dLocal for a fee based on volume of approved transactions

Thailand, Guatemala and El Salvador all have a large number of payment methods being used, and as a result a large number of access points for potential fraudsters. As dLocal deploys its newest fraud prevention services, it makes sense that they will want to prove market value in areas with a wide range of payment services and fraud danger.

“At the launch, dLocal’s platform will enable 16 different alternative payment methods, in addition to credit and debit cards; and that’s only for three countries,” dLocal COO Sumita Pandit stated in today’s release.

The fraud management and detection technology is also interesting when you look into El Salvador, in particular, when you consider their recent adoption of bitcoin. With the popular cryptocurrency being integrated into Chivo Wallet, the government-issued smartphone app used to store and exchange bitcoin, there has already been attempts to exploit market volatility and technical loopholes.

“To deliver this expertise through our Smart Defense tool, we need to bring constant learning and iteration through our machine learning models. These algorithms are learning from millions of transactions processed locally in each emerging market, and are customized for our processed industries,” dLocal Senior VP of Product Rodrigo Sánchez Prandi told FinLedger.

“Our close relationship with acquirers and issuers in emerging markets is also an important factor that adds to the mix of technology and dLocal expertise to manage risk and prevent new fraud patterns,” he said.

In other recent fintech news, Payveris launched its new Bill Center, consolidating bill payment for financial institutions and customers. Stripe and Klarna also partnered to offer BNPL for merchants as the lending model continues to create headlines and drive adoption ahead of the holiday season.

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