BEIJING | A partnership between CyberSource, a Visa company and one of the world’s largest providers of eCommerce payment management services, and Alipay, China’s leading online payment service, has led to improved fraud management practices across the entire Alibaba eCommerce portfolio. This includes AliExpress, Taobao and Taobao’s external merchants.
CyberSource Decision Manager
The partnership, which started with AliExpress in 2010, has enabled Alipay to build on its existing in-house fraud management capabilities, consequently enhancing its merchant services. By utilizing CyberSource Decision Manager, AliExpress has maintained low fraud rates for their cross-border B2C business. Due to this partnership, the company has been able to reduce its fraud rates further, enabling Alipay and its merchants to significantly improve their fraud management capabilities as well.
China's Ecommerce Market
China’s eCommerce market is expected to exceed US$539 billion by 2015 and is set to overtake that of the United States’ this year to become the world’s largest market by consumer spend. According to Visa, transaction security is a key concern for 56 percent of Chinese consumers surveyed when making online payments2. Therefore, merchants who proactively safeguard their customers’ interests by keeping fraud under control will have a competitive advantage in the eCommerce market.
In addition to Decision Manager, CyberSource also provides Alipay with Managed Risk Services to add scale and expertise to Alipay’s existing team. CyberSource’s risk analysts’ global and ￼￼vertical fraud management strategy expertise helps Alipay to better protect the interests of its merchants, while expanding global business interests.
Alipay the largest Online Payment Service Provider in China
Alipay now supports more than 800 million registered users and processes over 105.8 million transactions daily, totaling a monetary value of over US$3 billion. On November 11 this year, the company processed 188 million transactions in one day alone. Today, it is the largest online payment service in China and is estimated to facilitate about half of all online payment transactions within the country.
'low fraud rates and high transaction acceptance rates'
“Alibaba and Alipay are growing rapidly and expanding on a global scale. With this in mind, we need to protect the business against the risks of global fraud,” said Tu Jianwei, Senior Director, Alipay. “The implementation of CyberSource Decision Manager and Managed Risk Services allows us to better understand best practices in global risk management and build an efficient system for our extensive user base. Our partnership with CyberSource has also enabled us to maintain a high level of successful transactions, while supporting our commitment to provide simple, safe and fast online payment solutions. With CyberSource’s world-class fraud management capabilities, our merchants are able to simultaneously maintain low fraud rates and high transaction acceptance rates, thereby enhancing their customers’ experiences. We see effective fraud management as a cornerstone of Alipay’s business goals and a necessity for us to stay ahead of our game.”
Pinpoint fraud effectively
CyberSource Decision Manager features the World’s Largest Fraud Detection Radar, helping Alipay to pinpoint fraud faster, more accurately and with less manual intervention. This is achieved by screening inbound orders against data and correlations from more than 60 billion transactions processed by Visa and CyberSource annually. The transaction data is supplemented by 260 validation and correlation tests, which enable the solution to effectively expand the depth and breadth of visibility in transaction patterns.
CyberSource’s Managed Risk Services combines Decision Manager with fraud consulting services to assist and optimize fraud management operations via performance monitoring. With a tailored solution as well as ongoing monitoring and tuning according to specific business needs and market conditions, Alipay benefits from fewer orders needing to undergo manual review.
Highly Competitive Chinese eCommerce Market
￼￼“Successful eCommerce companies want to sustain and grow their businesses in the large and highly competitive Chinese eCommerce market with confidence,” said Poon Khye Wei, Regional Director, Greater China and Korea, CyberSource. “It is our pleasure to be working with Alipay to support its fraud management strategy for online payments, helping it to gain business momentum through the provision of first-rate fraud management capabilities today and for years to come. We will also be extending our partnership with Alipay to support its drive towards offering merchants a complete online payment experience through a global payment gateway solution.”
CyberSource, a wholly-owned subsidiary of Visa Inc., is a payment management company. Over 400,000 businesses worldwide use CyberSource and Authorize.Net brand solutions to process online payments, streamline fraud management, and simplify payment security. The company is headquartered in Foster City, CA and maintains offices throughout the world, with regional headquarters in Singapore, Tokyo, Miami, Sao Paulo and Reading, U.K. CyberSource operates in Europe under agreement with Visa Europe. For more information, please visit https://www.cybersource.com/asiapacific.
￼￼￼Alipay (China) Network Technology Co., Ltd. is a leading independent third-party payment platform, and an affiliate of the Alibaba Group. Launched in 2004, Alipay provides an escrow service and partners with more than 170 financial institutions to provide payment solutions for Taobao.com and Tmall.com, as well as more than 460,000 online Chinese merchants. Internationally, Alipay connects more than 300 worldwide merchants directly to consumers in China and currently supports transactions in 15 major foreign currencies. For more information, please visit https://global.alipay.com/ospay/home.htm.
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