Partnerships are rarely agreed between competitors, however, with a gap in data to fully deliver its fraud prevention model, Capital One has decided to build and share a new product with payments rivals Stripe and Adyen. The news was revealed in an interview with TechCrunch.
The open-source solution called Direct Data Share facilitates merchants or entities in the payments stack to share real-time transactions data, which is useful in particular for more risky online purchases. TechCrunch reported that the data flows via Capital One’s API solution to the bank whilst detecting fraud threats.
Outreaching to other global payments providers and fintechs, who can leverage the protection at no additional cost, customers should experience fewer false card declines. Stripe and Adyen have aligned their similar business models, aiming to minimise the financial consequences of fraud. Whilst Capital One and Stripe have developed this solution together since 2023, Adyen is recently engaged.
