TechCrunch reporter Ingrid Lunden covered the news of our $100 million funding round led by Apax Digital in an exclusive last week.
“As an increasing number of daily and essential services move to digital platforms — a trend that’s had a massive fillip in the last few months — having efficient but effective ways to verify that people are who they say they are online is becoming ever more important,” Lunden writes. “Now, a startup called Payfone, which has built a B2B2C platform to identify and verify people using data (but no personal data) gleaned from your mobile phone, has raised $100 million to expand its business.”
Lunden also notes that the market for authentication and verification services is projected to grow to $12.8 billion by 2024, according to MarketsandMarkets. She goes on to explain that while “there seems to be an almost infinite amount of variations, approaches and companies offering services to carry out the work… there’s also a push to develop more seamless and user-friendly, and essentially invisible, approaches, and that’s where Payfone sits.”
Lunden also highlights that Payfone’s commitment to and focus on protecting users and their data privacy has been a differentiator and has helped it stand out to investors.
Read the full article at TechCrunch
Investment Will Accelerate Privacy-First Customer Identity Platform with Strategic Acquisitions
New York NY, June 18, 2020 – Payfone announced it has raised $100 million to acquire strategic assets, further strengthen its machine learning capabilities, and build a cross-industry consortium to secure digital transactions and experiences. The investment was led by funds advised by Apax Digital, the growth equity team of Apax Partners.
Payfone is setting a new standard for digital identity verification and authentication. Its customer identity platform enables the world’s largest financial institutions, healthcare organizations and technology companies to bring speed and security to their onboarding, digital servicing and call center processes.
Payfone’s authentication solutions, including its unique Trust Score™ tool, are built on ten years of proprietary phone intelligence that enable Payfone to anonymously measure a phone number’s reputation and risk with real-time processing of behavioral signals. Payfone’s platform instantly detects burner phones, spoofed calls, real-time SIM swap fraud, and synthetic identities, while removing friction from legitimate transactions. Payfone also provides call verification solutions that run passively in the background of a phone call, allowing faster issue resolution.
Rodger Desai, CEO of Payfone, said, “The mobile phone is rapidly becoming the secure passport for navigating our digital lives. With one in three US consumers already authenticated by Payfone, this investment accelerates our ability to set the standard for the authentication process. As we build out a cross-industry consortium, more enterprises will be able to access Payfone’s real-time fraud and risk signals to prevent account takeovers while passing more transactions.”
Daniel O’Keefe, Managing Partner of Apax Digital said, “Identity is the key enabling technology for the next generation of digital businesses. Payfone’s Trust Score™ is core to the real-time decisioning that enterprises need in order to drive revenue while thwarting fraud and protecting privacy.”
Zach Fuchs, Principal of Apax Digital added, “Payfone’s technology enables frictionless customer experience, while curbing the mounting operating expense caused by manual review.” Concurrent with the investment, Mr. O’Keefe and Mr. Fuchs will join Payfone’s board of directors.
Joining the investment round are new investors Sandbox Insurtech Ventures and Ralph de la Vega, the former Vice Chairman of AT&T. Existing investors MassMutual Ventures, Synchrony, Blue Venture Fund, Wellington Management LLP, and former CEO of LexisNexis Andrew Prozes also participated.
For more information about Payfone’s suite of identity verification and authentication solutions, visit payfone.com.
Payfone is a rapidly growing software and data analytics company based in New York. Payfone’s customer identity platform secures the digital experiences of the banking, insurance, telecommunication, retail, and healthcare industries. Its patented Trust Score™ enables enterprises to pass more digital transactions while thwarting fraud attacks. For the latest updates follow us at https://www.linkedin.com/company/payfone.
About Apax Digital
The Apax Digital Fund specializes in growth equity and buyout investments in high-growth enterprise software, consumer internet, and technology-enabled services companies worldwide. The Apax Digital team leverages Apax Partners’ deep tech investing expertise, global platform, and specialized operating experts, to enable technology companies and their management teams to accelerate the achievement of their full potential. Over its more than 40-year history, Apax Partners has raised and advised funds with aggregate commitments of over $50 billion. These funds provide long-term equity financing to build and strengthen world-class companies. For more information see: www.apax.com
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NEW YORK (April 17, 2019) – Payfone, an award-winning digital identity authentication leader, today announced the closing of a $24 million funding round led by TransUnion (NYSE: TRU), a global leader in information solutions, with participation from existing investors Synchrony (NYSE: SYF), a premier consumer financial services company; MassMutual Ventures, the venture fund of leading mutual life insurance company Massachusetts Mutual Life Insurance Company (MassMutual); and Wellington Management LLP.
TransUnion’s investment in Payfone underscores a new strategic partnership that will leverage the two companies’ complementary missions and capabilities to accelerate the global digital economy.
TransUnion will enhance its existing IDVision® with iovation® suite of products by integrating Payfone’s Trust Platform™ and Trust Score™, enabling businesses to overcome the historical tradeoff between security, convenience, and privacy. Payfone also announced that TransUnion will become Payfone’s primary partner for regulated identity verification information.
Despite the fact that it is estimated that 98% of online transactions are legitimate, the digital economy suffers from a ‘Trust Gap’ in which the fear of cyberattacks, synthetic fraud, and stolen identities leads to falsely declined transactions and ever-mounting fraud losses. Powerful, proprietary algorithms enable Payfone’s Trust Score™ to close the Trust Gap, allowing businesses to approve more transactions instantly, while thwarting fraud.
“The fear of identity fraud and cyberattacks holds the digital economy back from its full potential,” said Rodger Desai, CEO of Payfone. “For example, in lending, it’s striking that today five times more loan applications are approved in-person than on-line, despite credit -worthiness. With our partnership with TransUnion, we can now leverage TransUnion’s footprint of more than 30 countries to help expand our Trust Score™ around the globe, allowing billions of additional consumers to safely access digital services.”
“We’ve had a relationship with Payfone since 2017, recognizing the incredible value they bring to fraud prevention. Within this new strategic partnership, we anticipate supporting Payfone’s expansion to new markets and looking at other uses of their products throughout our organization, said Geoff Miller, Senior Vice President of Global Fraud and Identity Solutions, TransUnion. “We are both committed to protecting consumers, focusing on data privacy and building trust with our customers, and the combination of our solutions will create a better, more seamless experience for everyone.”
In March, Payfone announced the next phase of their Zero-Knowledge architecture, which enables identity verification partners, such as mobile network operators, to verify consumer and business identities without consumer information being passed, stored, or aggregated. In 2018, the company authenticated 20 billion transactions for Fortune 500 companies using this privacy-first approach, and it expects to double that number in 2019. Click here to learn more about Payfone’s privacy-first Bill of Trust.
As part of the funding round, Miller will join Payfone’s Board of Directors.
Payfone’s award-winning Trust Platform™ and Trust Score™ bring trust to the digital economy by enabling businesses to instantly verify customers while thwarting fraud and cyberattacks in real-time; all within a privacy-first, zero-knowledge framework. Payfone serves 6 of the top 10 US financial institutions, and leading healthcare, insurance, technology and retail companies. Learn more at payfone.com and linkedin.com/company/payfone.
About TransUnion (NYSE: TRU)
Information is a powerful thing. At TransUnion, we realize that. We are dedicated to finding innovative ways information can be used to help individuals make better and smarter decisions. We help uncover unique stories, trends and insights behind each data point, using historical information as well as alternative data sources. This allows a variety of markets and businesses to better manage risk and consumers to better manage their credit, personal information and identity. Today, TransUnion has a global presence in more than 30 countries and a leading presence in several international markets across North America, Africa, Europe, Latin America and Asia. Through the power of information, TransUnion is working to build stronger economies and families and safer communities worldwide.
We call this Information for Good℠. www.transunion.com