Irish ecommerce security and fraud prevention startup Trustev announced a $3 million round of seed funding Wednesday. Trustev launched in May at TechCrunch Disrupt in New York City, and plans to open its first US office there in 2014.
Participants in the seed funding include Greycroft Partners, Mangrove Capital Partners, ACT Ventures, Telefonica and Enterprise Ireland, and the company says that the funds will be used to finance its US expansion and further development of its services.
Trustev active authentication uses multiple dynamic data sources to independently verify a user’s identity, while passive authentication confirms and secures the transaction.
“Trustev is solving the three biggest issues that stand in the way of the e-commerce industry’s growth: limiting manual review of card-not-present transactions, bringing online fraud rates down to the equivalent of other channels, and empowering retailers to accept international payments,” said Ian Sigalow, Partner and Co-Founder at Greycroft Partners. “We expect e-commerce to reach parity with physical retail sales over the next two decades – that is a trillion dollar shift in consumer behavior in the US, and much more globally – and Trustev is an essential part of this growth.“
Trustev is already in use at over 35 companies, and expects to be processing 10 million transactions per week by the end of 2013.
Fraud protection and e-commerce solutions are an area of growing competition. Startup Signifyd launched its security SaaS, which also relies on dynamic data sources to confirm customer identity, earlier in October.
Expanding into the US will give Trustev greater access to an ecommerce market which is already the world’s largest and is still growing fast, according to Forrester’s Readiness Index.