Cashfree Payments launches product solution to cut fraudulent transactions

Cashfree Payments, a company specialising in banking solutions and payments, on Thursday launched a risk management solution for payment gateways which aims to reduce fraudulent activities by 40 per cent.

Cashfree’s ‘RiskShield’ enables customers to add limits on the frequency and cumulative sum of transactions that an individual customer is permitted to pay on a periodic basis.

The company said it employs automated machine learning-based mechanisms to block fraudulent accounts.

“This kind of product gives customers more control around the kind of payments they want to accept. If they are comfortable, they can also reject the payments which they don't find safe enough to accept,” said Akash Sinha, chief executive officer (CEO) and co-founder, Cashfree Payments.

Sinha added that the service enables businesses to block transactions originating from places known for cybercrime and financial fraud.

“There might be businesses who may not want to accept payment from a certain state or certain district since they know the risk of fraud is higher from these places,” he said.

For the company’s customers, the service will cost less than a rupee per transaction, which he believes is a ‘value-addition’.

Sinha added that he expects around 50 per cent of the company’s users to use the service within the next year, which will further increase to 80 per cent of its customer base in two years.

“50 per cent of our payment gateway customers will use it this year, and by next year we expect more than 80 per cent of users to use the service,” he added.

Currently, the company caters to a base of 600,000 customers.

The company rolled out its product for customers who aim to mitigate the risk of financial frauds, minimise litigation risks, and improve transaction experiences, the company said.