Delivery Hero tucks into risk management

With Delivery Hero’s success came increased visibility and higher rates of fraud, leading to a rise in fraudulent chargebacks.

The effect of this is two-fold: Not only is it a drain on both financial and internal resources, but it also increases the likelihood of being flagged as ‘high-risk’ by the card schemes, which will affect overall authorization rates.

The solution came with Adyen’s risk management system, RevenueProtect.

Using Adyen’s in-depth transaction data, RevenueProtect defined intelligent rules, specific to Delivery Hero’s business model, to identify and block fraudsters, while legitimate customers could continue to place orders unhindered.

Using RevenueProtect’s extensive list of risk checks, the two companies worked together to fine-tune Delivery Hero’s risk settings to target fraud while keeping friction to a minimum.

3D Secure has a mixed reputation. On one hand, it is a useful tool to prevent fraud, providing merchants with a liability shift.

On the other hand, it can have a negative impact on conversion rates meaning that, in some markets merchants choose to abandon it completely.

This was the case in Germany, where Delivery Hero was not using 3D Secure at all.

Now, to combat the high rate of chargebacks from high-value transactions, 3D Secure is applied dynamically to high-value transactions.

In Europe, local payment preferences can vary as much as local languages. In Germany, for example, customers prefer to pay using direct debit, online banking, or invoicing.

Adyen supports all popular local payment methods, making it easy for Delivery Hero to add additional methods to cater to local markets.

For Delivery Hero, it is important that payment is instantaneous, making online banking method, SOFORT, an ideal choice in Germany.

“With Adyen, it is easy to add new payment methods, all of which can be managed from the same integration and just one contract. This has had a great impact on our business; in Germany for example, SOFORT now accounts for 10% of our orders.” says Kathrin.

Delivery Hero has big plans in terms of future expansion. And its next step is to consolidate its online payments across all markets, establishing a scalable infrastructure to support future growth.

Adyen’s global payments technology plays a central role in this, allowing Delivery Hero to accept marketplace payments from customers anywhere in the world, and manage everything from one unified commerce solution.

“We are excited to be partnering with Adyen to drive our ongoing expansion. It will make it easier for us to operate in markets like South America, and support local payment methods, rather than having to rely on cash.” Kathrin notes.

The two companies will continue to work side by side to drive Delivery Hero’s ongoing success. Adyen’s team of local experts is on hand to guide the company’s payment strategy, driving optimization, and powering future growth.