Visa Acquires the Californian FinTech Verifi

The US card scheme Visa buys out Verifi, a Californian company providing payment dispute resolution technologies.

Goal: reduce chargebacks that service providers are typically required to pay.
The amount of this transaction hasn’t been disclosed.
How it works? Verifi’s technology connects all parties involved in managing dispute resolution in near real time. They aim at solving issues before they induce chargebacks.
Visa intends to include Verifi’s tools in their risk management services, providing buyers and sellers with:
- More automation
- Near real-time communication
- Data-driven insights
The acquisition remains subject to regulatory approval.

Better monitor changes. As changes keep being made in the way consumers pay and get paid, the way sellers and buyers communicate to solve potential transaction-related disputes also has to evolve fast. Customers now expect more flexibility, and changes are required to meet this need (cash on delivery, try before you buy, etc.). The addition of Verifi’s technology to Visa’s risk management solutions should contribute to addressing these issues.
More transparency. Ensuring trust and transparency throughout the purchasing experience is at the heart of their promise. Through this acquisition, Visa wants to provide buyers and sellers with smart tools likely to improve collaboration, while enhancing trust levels and customer experience. Verifi’s technology connects all involved parties, which means it also saves time and resources.
Increasing customer portfolio. Verifi claims more than 25,000 accounts; this operation will help them win a much larger number of customers. For the card scheme, this acquisition should expand their set of skills to other partners in the payment ecosystem.

In January 2019, Visa bought out the British FinTech Earthport and aimed at expanding their cross-border payment activities. Their new announcement is in line with this acquisition strategy meant to increase value position through adding in services for issuers and merchants.
Two months later, Mastercard acquired Ethoca: a global provider of technology solutions relying on collaborations between card issuers and e-merchants. Just like Verifi, Ethoca makes it possible to avoid chargebacks.

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