Because we process billions of credit card transactions daily, there is always the possibility that fraudulent behavior, or what is considered fraudulent conduct, might sneak in. Moreover, it is. Annually, hundreds of millions of customers report incidents of fraudulent activity involving their credit cards.
Oban MacTavish, Tess Bloch, and Cooper Hart, the co-founders of Spade, believe that a significant portion of the fraud may be eradicated if card issuers are provided with access to real-time transaction intelligence.
When we last reported on Spade earlier this year, the business raised $5 million to read the string of numbers and letters card issuers use to allow transactions in seconds.
Spade receives the information in real time directly from the issuer whenever a card is swiped or inputted. This transaction is associated with a merchant whose identification has been validated, and it is transmitted back to the issuer in real time with information about the merchant’s identity and facts regarding the category and geolocation.
Credit card transaction nonsense is transformed into data that is understandable and actionable by Spade.
A fast-forward to the present day reveals that the organization is still furnishing that entire merchant profile. MacTavish told TechCrunch that Spade’s ability to perform this task at a pace of less than fifty milliseconds and with a 99% accuracy rate has made the company a leader in the field. A typical time frame is around 250 milliseconds.
This enables Spade’s clients, such as Mercury, Sardine, Ramp, and Unit, to have access to the most accurate data possible, which is necessary for the rapid authorization of transactions, the development of novel card solutions, and the improvement of fraud detection, which may sometimes be more than fifteen percent.
In an interview with TechCrunch, CEO MacTavish stated, “We’ve really shifted our strategy.” As a result of the fact that we discovered our place in the fraud detection industry, there has been a significant increase in the market for us. Fraud will only become a more significant issue as financial institutions become increasingly sensitive to margin fluctuations.
He said, “It’s been a big year of growth and will be another year for us.” MacTavish declined to provide any specifics on the rise in revenue and the company’s number of customers.
Another round of investment was raised for Spade due to that “big year of growth.” With the help of Flourish Ventures, it just secured a Series A funding round of ten million dollars. Additionally, companies such as Andreessen Horowitz, Gradient Ventures, Y Combinator, Dash Fund, and Everywhere Ventures (The Fund) were involved in the venture.
To support its ongoing efforts in technology and product development, data, and customer success, Spade intends to utilize the money to double the size of its staff of thirteen. The corporation is also planning to expand its operations within the United States of America.
“When it comes to selling to banks, the most important thing is getting your first ‘lighthouse’ bank customer,” MacTavish stated. The capability on the post-authorization side will also be expanded as part of our efforts to provide additional services to our clients. In addition, the overall volume of data that we operate with is something that we are constantly monitoring, and we anticipate it will increase significantly. I expect this number to serve as “the North Star” for us as we continue to expand our presence in the banking industry, and it will most likely be the most crucial element that will lead to a Series B in the future.
