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What is Riskified's Competitive Landscape?
The e-commerce fraud prevention market is dynamic, shaped by evolving AI scams and growing online sales. Riskified, founded in 2012, aims to help online merchants manage fraud and risk effectively.
Riskified's platform assists merchants in approving more legitimate orders while minimizing chargebacks and false declines. The company has seen substantial growth, going public in 2021 with a valuation of $4.3 billion.
In 2024, Riskified reported $327.52 million in revenue, a 10.05% increase. For Q1 2025, revenue was $82.4 million, up 7.8% year-over-year, with a GMV of $34.2 billion. The company also achieved its sixth consecutive quarter of positive adjusted EBITDA in Q1 2025, totaling $1.3 million. This performance highlights Riskified's position in a market where global e-commerce fraud losses are projected to be significant, with an estimated $48 billion in losses from online payment fraud in 2023 alone. Understanding the Riskified BCG Matrix can offer insights into its market position.
Where Does Riskified’ Stand in the Current Market?
Riskified is a significant player in the e-commerce fraud prevention sector, a market expected to expand from $61.01 billion in 2024 to $73.96 billion in 2025, reflecting a compound annual growth rate of 21.2%. The company's core offering, Chargeback Guarantee, aims to validate the authenticity of online transactions for merchants.
Market Presence and Growth
Riskified serves a global clientele, with recent merchant acquisitions broadening its industry and geographic footprint. In the first quarter of 2025, eight of its top ten new Chargeback Guarantee clients were located outside the United States, indicating international expansion. The company also noted substantial growth in its Money Transfer & Payments category, with a year-over-year increase of approximately 90%.
Geographic Reach and Sector Focus
While the United States remains its largest market, showing 9% growth in 2024, Riskified also experienced 4% growth in the EMEA region. This expansion highlights the company's efforts to diversify its market presence and cater to a wider range of e-commerce businesses globally.
Financial Performance
In 2024, Riskified reported revenue of $327.52 million, a 10.05% increase from the prior year. For the first quarter of 2025, revenue reached $82.4 million, up 7.8% compared to the first quarter of 2024. The company anticipates full-year 2025 revenue to be between $333 million and $346 million.
Product Diversification and Profitability
Growth in products beyond its core Chargeback Guarantee, such as Dispute Resolve and Policy Protect, has been robust, with revenue from these offerings increasing by approximately 190% year-over-year in Q1 2025. The company achieved positive adjusted EBITDA for its sixth consecutive quarter in Q1 2025, reporting $1.3 million. Its GAAP gross profit margin for Q1 2025 was 49%, with a non-GAAP gross profit margin of approximately 50%.
Financial Stability and Strategic Outlook
Riskified maintains a strong balance sheet with approximately $357.1 million in cash, deposits, and investments as of March 31, 2025, and no outstanding debt. This financial health supports its ongoing innovation and expansion efforts within the competitive e-commerce fraud prevention landscape. Understanding the Growth Strategy of Riskified provides further insight into its market positioning and competitive approach.
- E-commerce fraud prevention market projected to reach $73.96 billion by 2025.
- Revenue growth from non-Chargeback Guarantee products up approximately 190% in Q1 2025.
- Significant international growth observed, with 8 of top 10 new logos outside the US in Q1 2025.
- Positive adjusted EBITDA achieved for six consecutive quarters.
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Who Are the Main Competitors Challenging Riskified?
The competitive landscape for e-commerce fraud prevention is dynamic, with several key players vying for market share. Understanding these Riskified competitors is crucial for a comprehensive Riskified market analysis.
Primary rivals offering similar e-commerce fraud prevention solutions include Sift, SEON. Fraud Fighters, Signifyd, ClearSale, Kount, and Forter. Additionally, broader fraud detection and risk management companies such as NICE Actimize, LexisNexis Risk Solutions, and TransUnion's TruValidate also present competitive challenges.
Sift
Sift is recognized as a leading alternative, utilizing an AI-powered platform for fraud decisioning.
Signifyd
Signifyd offers a comprehensive e-commerce protection platform, directly competing in the same space.
ClearSale
ClearSale is known for its robust e-commerce fraud protection and fraud detection capabilities.
Kount
Kount provides customizable automation, real-time analytics, and detailed identity insights for fraud prevention.
Forter
Forter, another significant competitor, has achieved a $3 billion valuation, indicating strong market presence.
Broader Market Players
Companies like NICE Actimize and LexisNexis Risk Solutions compete in the wider fraud detection sector.
Competitive Dynamics
The Riskified competitive landscape is shaped by continuous innovation in AI-driven fraud tactics. Competitors differentiate themselves through advanced technologies, pricing structures, brand reputation, and customer support.
- Emerging players and strategic partnerships also influence market dynamics.
- The constant evolution of fraud methods necessitates ongoing development from all industry participants.
- Competition extends to broader business service providers and specialized financial fraud detection software firms.
- Understanding how Riskified compares to other fraud detection tools is key to assessing its market position.
- A Brief History of Riskified provides context for its current competitive standing.
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What Gives Riskified a Competitive Edge Over Its Rivals?
Riskified's competitive advantages are deeply rooted in its advanced AI-driven platform and an extensive data network. This combination allows for real-time decision-making and robust identity verification, significantly benefiting merchants by increasing approved orders while simultaneously reducing chargebacks and false declines. The company's proprietary technology is designed to detect fraud with superior accuracy, reportedly outperforming competitors by a factor of 2-3 in direct comparisons.
A standout feature in the Riskified competitive landscape is its Chargeback Guarantee. This unique offering provides merchants with complete financial protection against fraud-related chargebacks on transactions that Riskified approves. By assuming the financial risk of fraud, Riskified empowers businesses to confidently expand their operations, enter new markets, and offer more flexible payment options. This value proposition has been particularly effective in attracting large enterprise clients, with the company exceeding its 2023 targets for new annual contracts valued at $1 million or more by over 70% in 2024.
AI-Powered Fraud Detection
Leverages machine learning for real-time transaction analysis and identity-based insights, improving approval rates and reducing fraud.
Chargeback Guarantee
Offers 100% money-back protection against fraud-related chargebacks on approved transactions, shifting financial liability.
Extensive Data Network
A vast global merchant network provides rich datasets that continuously enhance the accuracy and effectiveness of its fraud detection algorithms.
Expanding Product Suite
Offers additional solutions like Policy Protect and Dispute Resolve, diversifying revenue streams and increasing customer value.
The company's expansive global merchant network is a critical asset, feeding its machine learning algorithms with a wealth of diverse transaction data, which in turn refines the precision of its fraud prevention capabilities. This network effect is a significant factor in its market analysis. Furthermore, Riskified's commitment to innovation is evident in its strategic plan to increase research and development capacity by nearly 20% in 2025, while maintaining flat total expenses. This focus on continuous improvement ensures its technology remains at the forefront of the e-commerce fraud prevention competitors space. The growth in its multi-product offerings, with revenue from Policy Protect and Dispute Resolve increasing by approximately 190% year-over-year in Q1 2025, highlights its ability to adapt and expand its market share in the fraud prevention landscape. These combined advantages create a strong, defensible position that is challenging for Riskified competitors to quickly replicate.
Sustainable Competitive Edge
Riskified's competitive advantages are built on proprietary AI, a growing data network, and a unique risk-sharing model, making them difficult for rivals to replicate.
- Proprietary AI technology for advanced fraud detection.
- A continuously expanding global data network.
- A unique risk-sharing model through its Chargeback Guarantee.
- Ongoing investment in research and development for sustained innovation.
- Diversified product offerings beyond core fraud prevention.
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What Industry Trends Are Reshaping Riskified’s Competitive Landscape?
The e-commerce fraud prevention industry is undergoing rapid transformation, driven by technological advancements, particularly in artificial intelligence. This evolution presents a dynamic competitive landscape for companies like Riskified. Global e-commerce fraud is projected to escalate significantly, with losses anticipated to climb from $44.3 billion in 2024 to $107 billion by 2029. This surge is fueled by increasingly sophisticated attack methods, including deepfakes and synthetic identities, which are becoming more prevalent.
In this environment, Riskified faces the ongoing challenge of adapting its AI models to counter evolving fraud tactics. Maintaining a delicate balance between robust security measures and a frictionless customer experience is paramount, as overly stringent systems can deter legitimate transactions. Furthermore, navigating an increasingly complex regulatory environment and addressing data privacy concerns require agile and compliant solutions. Understanding the Revenue Streams & Business Model of Riskified is key to appreciating its position within this evolving market.
Industry Trends: AI-Driven Sophistication
The e-commerce fraud prevention sector is heavily influenced by artificial intelligence. AI is not only enhancing defense mechanisms but also empowering sophisticated fraud attacks. Deepfakes and synthetic identities are emerging as significant threats, complicating fraud detection efforts.
Future Challenges: Evolving Tactics and Compliance
Companies in this space must continuously innovate to combat new fraud methodologies. Balancing security with customer experience is a critical challenge, as is adhering to evolving data privacy regulations and compliance standards.
Opportunities: Market Growth and Platform Expansion
The expanding e-commerce market presents substantial growth opportunities. The fraud detection and prevention market is projected to reach $160.02 billion by 2029, creating a fertile ground for advanced solutions.
Strategic Growth Avenues
Leveraging AI-powered platforms for real-time monitoring and predictive analytics is key. Expanding into high-growth areas like money transfer and payments, alongside geographic diversification and strategic partnerships, offers significant avenues for market expansion.
Key Growth Drivers and Strategic Investments
The increasing volume of online transactions fuels the demand for robust fraud prevention. Strategic investments in research and development are crucial for maintaining a competitive edge and scaling technology globally.
- Global e-commerce fraud losses are expected to reach $107 billion by 2029, up from $44.3 billion in 2024.
- Impersonation fraud accounted for 82% of all fraud cases in 2024.
- Deepfakes now represent 7% of global fraudulent activity.
- The fraud detection and prevention market is projected to reach $160.02 billion by 2029.
- Money transfer and payments saw approximately 90% year-over-year revenue growth in Q1 2025.
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- What is Brief History of Riskified Company?
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