PayPal has acquired its second startup in as many days, as the payments giant announced today that it was snapping up machine learning-powered fraud detection startup Simility. The transaction is valued at $120 million, in what will be an all-cash deal.
The news comes two days after PayPal bought out payments startup Hyperwallet in a $400 million deal.
Founded in 2014, Palo Alto-based Simility leverages machine learning to help those working in the fraud detection sphere collect and analyze data. The platform is designed to prevent myriad kinds of fraud, such as account takeover (ATO), where a bad actor tries to gain access to another person’s online account. In such a scenario, Simility looks at various session, device, and behavioral biometrics and builds a profile for what constitutes “normal” user login behavior; if an anomaly is spotted, it can act to prevent the action.
That PayPal has decided to buy Simility should not come as a major surprise. Simility has raised in the region of $25 million in funding, with PayPal contributing to its recent $17.5 million series B round.
PayPal has acquired around 17 companies in its history, four of which have taken place in 2018 alone. Indeed, the company made its biggest acquisition by quite some margin last month when it bought European Square competitor iZettle for $2.2 billion. And a few weeks back, it also bought San Mateo-based Jetlore, which specializes in artificial intelligent retail systems.
PayPal, it seems, is hell-bent on buying the best technology and talent around, and with Simility now on board too, it’s clear that AI…