Community Research and Development Information Service - CORDIS

H2020

PAYPLUG LABS Report Summary

Project ID: 666287

Periodic Reporting for period 1 - PAYPLUG LABS (Next generation online payments and fraud detection API for European SMEs)

Reporting period: 2015-06-01 to 2016-03-31

Summary of the context and overall objectives of the project

The European Union has stated that the number of SMEs selling online must increase if we are to hit our economic growth targets and create jobs. However, the EU’s target for 33% of SMEs to be selling online by 2015 was far from met – reaching only 16,7% at the end of 2015.

The PAYPLUG LABS project targets the two main barriers that prevent SMEs from trading online: the complexity of setting up online payments and concerns about credit card fraud.

The aim of the project is therefore to enable more SMEs to efficiently and cost-effectively access the full potential of Europe’s burgeoning e-commerce market, by providing them with a simple and secure means of collecting online payments. We are developing a next-generation payment platform that reduces software integration costs by a factor of five and provides fraud protection thanks to modern statistical algorithms. In addition, we are developing sophisticated technology that will allow PayPlug to accurately detect risky vendors and at the same time register legitimate businesses rapidly.

The project comprises four major objectives:

1/ Developing an online payment platform that offers advanced payment features but remains simple to implement
2/ Offering a fraud detection system that helps SMEs to assess the fraud risk of each online transaction
3/ Implementing a fraud detection system that enables PayPlug to detect fraudulent SME users and thus register legitimate businesses more quickly and accurately than banks and other payment providers
4/ Develop robust security systems and infrastructure so that our solution can serve SMEs across the EU

The project is carried out by a sole beneficiary, PayPlug, a French SME founded in 2012 with the aim of bringing online payment solutions initially to freelancers and micro-businesses and now to SMEs via the PayPlug Labs project.

Work performed from the beginning of the project to the end of the period covered by the report and main results achieved so far

During the first period of the project (June 2015 – March 2016), significant progress was made across all work packages.

We have successfully launched a preliminary version of our payment solution, which includes two advanced functionalities: payment pages that can be hosted directly within an SME’s existing website and the possibility to offer one-click payments to an SME’s repeat customers. We have published clear documentation and resources for developers, with one beta tester reporting that “we planned for two weeks to integrate the payment solution but it was fully-functioning in just a few hours”. We will now continue to add advanced features and test the solution with our user base.

We have also produced important groundwork for our fraud detection systems, creating statistical algorithms that are already proving more powerful that traditional rule-based fraud detection models. As the project continues, we will now work on testing and “teaching” our algorithms on a larger dataset.

Work on our system security and infrastructure has provided the necessary evolutions to support the new payment solution, fraud prediction systems and our rapidly-growing user base.

Finally, we have developed new commercial partnerships, refined our pricing strategy and communicated our project widely to French media.

Progress beyond the state of the art and expected potential impact (including the socio-economic impact and the wider societal implications of the project so far)

The technical challenge at the heart of our project is the provision of advanced payment features and fraud protection via a simple and rapid-to-implement solution that can be used by any developer. This gives any SME the opportunity to begin trading online.

At the end of the first reporting period, we have moved closer to this goal. We are currently the only European payment provider offering businesses the possibility integrate a payment page directly to their website, without needing to manage complex security nor technical integration of 3-D Secure. Our base-work on the fraud protection model has shown that we will be able to offer a sophisticated solution, unique to PayPlug, which makes this kind of technology accessible to SMEs for the first time. In overcoming these challenges, we are creating a unique market offer.

In the first 10 months of the project, hundreds of SMEs have already integrated our latest products.

Related information

Record Number: 190039 / Last updated on: 2016-11-03