In a globally expanding market, Koin, a fintech specialized in simplifying digital commerce, will invest approximately 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 introduce new technologies to ensure increasingly secure e-commerce transactions.
“Our goal is for merchants to have access to high-quality anti-fraud solutions with features such as biometrics and 3DS, an e-commerce authentication protocol that enhances transaction security and improves the shopping experience to prevent losses in online purchases,” explains Dieter Spangenberg, Chief Payments and Fraud Officer.
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 behavior.
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 nearly double the global average to manage payment fraud (19% vs. 11%), especially SMEs with revenues between $50,000 and $5 million in annual e-commerce sales.
For consumers, lack of security during online purchases also results in losses. A recent survey by Koin on the landscape of scams and virtual fraud showed that consumer vulnerability remains a threat. According to the research, 62.4% of Brazilians have already experienced some form of online scam attempt, with the majority (41.8%) occurring on shopping websites.
Therefore, the evolution of anti-fraud solutions is essential to simplify transactions and provide a smoother shopping experience for the brand’s partner consumers. “We are leaders in Argentina and are growing steadily in Brazil by offering essential tools to ensure consumer safety and protect businesses against financial fraud,” emphasizes Spangenberg.
Koin operates in Brazil, Argentina, Colombia, Mexico, Peru, Uruguay, and Chile, with major clients such as Decolar and Jetsmart, Nike, Frávega, Indrive, Simmons, Clickbus, and Reebok, helping to provide secure and flexible payment solutions across multiple countries.
Focus on Koin app transactions
Simultaneously, the fintech is betting on transactions through its own app. Since its launch just over a year ago, the app has surpassed 1.5 million downloads and is growing at a monthly transaction volume rate exceeding 50%. According to Lucas Iván Gonzalez, Chief Product Officer and Chief Commercial Officer, “60% of Koin’s daily operations come from the app, which consumers are increasingly using to seek credit for installment purchases at their favorite stores.”
“With the diversity of payment methods, along with the benefits provided to consumers in our app, we expect to triple the transaction volume by 2025,” highlights the executive.
By 2025, Koin aims to consolidate its BNPL (Buy Now, Pay Later) presence by diversifying into sectors such as tourism, education, apparel, cosmetics, sports, and pet products. According to the fintech’s executive, the goal is to expand credit democratization to new consumer segments in Brazil.
With the continuous strengthening of its client portfolio, combined with app growth and the expansion of anti-fraud solutions, Koin aims to establish itself as a leader in digital financial inclusion. “Our goal is to build 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 businesses and consumers,” concludes Gonzalez.
