A leading global transaction processor, in operation for 25 years and connecting more than 1,500 mobile service providers and ISPs in almost 200 countries, Syniverse, today announced a joint venture (JV) with fintech technology developer First Performance Global, resulting in the creation of SyntraPoint LLC.
The new JV is aimed at providing consumers with ways to shield themselves from fraud and identity theft, using real-time mobile transaction alerts and dynamic card controls, as part of the combined offering.
First Performance Global has developed a platform that issuers and processors utilize to engage with their customers, including a suite of solutions designed to enhance cardholder’s experience, and which appears to have been leveraged or white-labeled as part of the new synergy.
Alerts becoming more important
The official press release described that transaction alerts have become increasingly important in the payments industry, with companies like MasterCard and Visa releasing mandates that require users to be notified with some type of alert on every purchase transaction.
In other parts of the world that are less developed, such technology is already in use when compared to some providers in the US, where, for example, a debit card purchase or ATM withdrawal may automatically trigger an SMS to the cardholder's mobile phone to inform them in cases where such transactions were not authorized or made by the owner on purpose.
Conversely, in other parts of the world where credit card fraud is high, some brokers don't even permit clients to use such methods because of the high rate of chargebacks that are sometimes discovered after its already too late, following initial deposit transactions and any subsequent trading and/or attempted withdrawals. This has caused some brokers to implement many restrictions on how funds deposited via a card can be used.
In the case of identity theft, the challenge can become more complex if the thief poses as the cardholder and uses a bogus email to receive the alerts - as opposed to the alerts going to the rightful owner - which is why a multi-channel approach is needed.
As cybercrime and privacy matters increasingly become a hot topic and challenge, such solutions to protect consumers should be commonplace, and appears to the something that the new SyntraPoint synergy aims to solve.
New suite of cardholder tools
According to the update about the synergy, institutions that use SyntraPoint will be able to provide their cardholders with the ability to receive real-time alerts through multiple delivery mechanisms, including in-app push, phone call, email, and SMS notifications.
In addition, the solution will provide users the ability to define how, when and where their payment transactions may occur, including locations and payment thresholds, thus giving more control back to the consumers.
“These mandates, coupled with consumer demand have raised the bar for industry standards and customer expectations, and having immediate access to information regarding the status of payment activity is just one factor in the battle to protect cardholders. Today’s consumers want real-time alerts with the ability to control their card usage activity,” said Wayne Johnson, Chief Executive Officer, First Performance Global, commenting in the joint company press release.
Real-time alerts to mitigate risk
Mr. Johson added: “The capabilities of SyntraPoint will couple real-time alerts with the ability for end-users to control how and when their payment cards can be used as a comprehensive strategy for risk mitigation.”
Syniverse President of Enterprise Solutions, Dave Ratner, commenting in the announcement, said: “SyntraPoint’s ability to provide cardholders with real-time mobile transaction alerts and card controls exceed the minimum mandate requirements set by card issuers. We are enabling a set of tools that increase cardholder satisfaction with the added security benefits that are necessary in today’s market while laying the foundation for future use cases to enable financial institutions to engage their members and cardholders via mobile anytime, anywhere.”
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