In a globally expanding market, Koin, a fintech specialized in simplifying digital commerce, will invest around R$ 30 million to advance its anti-fraud solutions in Brazil and Latin America in 2025. Driven by the increase in digital transactions and the sophistication of fraud attempts, the fintech aims to expand its portfolio and bring new technologies to ensure increasingly secure transactions in e-commerce.
“Our goal is for merchants to have access to quality anti-fraud solutions with features such as biometrics and 3DS, an e-commerce authentication protocol, that increases transaction security and provides a better shopping experience to prevent losses in online purchases,” explains Dieter Spangenberg, Chief Payments and Fraud.
Developed to prevent fraud in e-commerce transactions and maximize sales conversion rates, Koin’s solution uses artificial intelligence and machine learning to analyze transactions in real-time, identifying suspicious patterns and fraudulent behaviors.
Studies indicate that, in just the first nine months of 2023, losses of R$ 41.4 billion were avoided in the country thanks to authentication and fraud prevention tools. According to the Global eCommerce Payments and Fraud Report, from 2024, merchants in Latin America spend almost twice the global average managing payment fraud (19% versus 11%), especially SMEs with annual e-commerce sales revenue between US$ 50 thousand and US$ 5 million.
For the consumer, the lack of security when making purchases online also brings losses. A recent survey by Koin itself on the scenario of online scams and frauds showed that consumer vulnerability is still a threat. According to the research, 62.4% of Brazilians have already experienced some kind of virtual scam, most of them (41.8%) on shopping sites.
Therefore, the evolution of anti-fraud offerings is essential to simplify transactions and provide an easier shopping experience for the brand’s partner consumers. ‘We are leaders in Argentina and we are growing consistently in Brazil, offering essential tools to ensure consumer safety and protect companies against financial fraud,’ highlights Spangenberg.
Koin operates in Brazil, Argentina, Colombia, Mexico, Peru, Uruguay, and Chile, and already has heavyweight clients such as Decolar and Jetsmart, Nike, Frávega, Indrive, Simmons, Clickbus, and Reebok, helping to provide safe and flexible payment solutions in various countries.
Focus on transactions in the Koin app
In parallel, the fintech company is focusing on transactions through its own app. Since its launch just over a year ago, the app has surpassed 1.5 million downloads and has been growing monthly at a rate of over 50% in transaction volume. According to Lucas Iván Gonzalez, Chief Product Officer and Chief Commercial Officer of the Company, ‘60% of Koin’s daily operations come from the application, which is increasingly being used by consumers when seeking credit to make installment purchases at their favorite stores.’
“With the variety of payment methods, in addition to the benefits provided to the consumer in our app, we expect to triple the transaction volume in 2025,” emphasizes the executive.
By 2025, Koin aims to consolidate its presence in the BNPL with an increasingly diverse range of segments, such as tourism, education, clothing, cosmetics, sports, and pets. According to the fintech executive, the goal is to expand credit democratization to new areas of consumption in Brazil.
Through continuous client portfolio reinforcement, along with app growth and the expansion of anti-fraud solutions, Koin aims to establish itself as a key player in digital financial inclusion. “Our goal is to pave a solid path to lead the anti-fraud market in Latin America and BNPL in Brazil, developing products and partnerships that bring accessibility and flexibility to both merchants and consumers,” Gonzalez concludes.
