Top fraud detection solutions for fintechs & payment platforms

For fintechs and payment providers, staying on top of fraud isn’t just about compliance - it’s about survival. A single lapse can lead to millions in losses, reputational damage, and, in worst-case scenarios, regulatory penalties that are hard to recover from.

Traditional fraud defences no longer cut it. That’s why the tools you choose - and how they’re integrated - make all the difference.

Let’s explore some of the most trusted fraud detection software solutions available, the features that actually matter, and how Edenred Payment Solutions helps fintechs protect their platforms at scale.

Why fintechs and payment providers need fraud detection that scales

The pressure on fintechs and payment platforms has never been higher. From the rise of real-time payments to growing customer expectations around instant approvals, speed and convenience are now non-negotiable. But fraudsters exploit speed. And agility. And automation.

Whether it’s account takeover, synthetic identities, transaction laundering, or good old-fashioned chargeback fraud - every click, swipe, or transfer carries risk.

And when fraud happens, the consequences are rarely confined to one department. Risk and compliance take the first hit. But it’s product, ops, finance, and customer support who deal with the fallout.

What to look for in a fraud detection solution

So what makes a fraud detection tool truly fit for purpose in today’s environment? While there’s no one-size-fits-all answer, a few core capabilities stand out:

Real-time transaction monitoring

The best tools spot suspicious patterns as they unfold - not hours later. Look for platforms that analyse behaviour, velocity, geolocation, and transaction context in milliseconds.

Machine learning and adaptive modelling

Static rules are no match for adaptive threats. Tools that use machine learning can evolve alongside emerging tactics, helping reduce false positives and catch the fraud that legacy systems miss.

Behavioural analytics

Modern fraud detection isn’t just about what was done - it’s about how. Mouse movements, keystroke patterns, mobile sensor data - these subtle signals can help distinguish real users from bots or bad actors.

Seamless API integration

Detection is only as good as your ability to deploy it. A robust API layer makes it easier to integrate the tool into your onboarding, payments, or transaction workflows without rearchitecting your stack.

Scalability and configurability

Startups and scaled platforms have different needs - look for solutions that let you configure models, risk thresholds, and alert handling to suit your growth stage and sector.

Top fraud detection software solutions for fintechs

Let’s take a look at some of the most trusted tools in the industry. These platforms are widely used by payment providers, digital banks, and fintechs across Europe and beyond.

1. Featurespace

Featurespace is a pioneer in adaptive behavioural analytics, and its ARIC™ Risk Hub platform is widely adopted by banks, e-money institutions, and payment processors across Europe. It works by building individual behaviour profiles and continuously adjusting risk scores in real time - making it especially effective at detecting anomalies like transaction laundering or rapid fund movements.

ARIC is known for its explainable AI capabilities and real-time visual dashboards, giving compliance teams the ability to drill into suspicious activity without relying on black-box models. With a strong track record in highly regulated environments, Featurespace is an excellent choice for platforms seeking both scalability and regulatory confidence.

• Strengths: Real-time detection, proven performance in regulated markets
• Best for: Banks, e-money institutions, large PSPs
  
  

2. Feedzai

Feedzai’s RiskOps platform combines fraud prevention and AML into a unified, AI-driven system. Built for scale, it allows financial institutions and fintechs to assess customer risk across onboarding, payments, and ongoing account activity using machine learning models that adapt as threats evolve.

The platform includes intelligent workflows, case management tools, and the ability to test, tune and deploy risk strategies without code. Feedzai’s modular architecture also makes it a good fit for larger, multi-jurisdictional fintechs that need to manage risk consistently across diverse regions and regulatory frameworks.

• Strengths: Unified fraud and AML platform, explainable AI
• Best for: Larger fintechs with multi-jurisdictional presence
  
  

3. Alloy

Alloy started as a KYC/identity verification engine, but has grown into a flexible risk decisioning platform combining fraud prevention, compliance, and onboarding orchestration. It allows fintechs to build custom rule sets, score applicants in real time, and connect to dozens of data providers through its pre-integrated API hub.

Its strength lies in automation: identity verification, document checks, transaction monitoring and fraud risk decisions can all be managed from a single dashboard. Alloy is ideal for fintechs offering lending, credit, or high-risk onboarding journeys where ID fraud and compliance risk intersect.

• Strengths: KYC/AML workflow automation, custom rules engine
• Best for: Onboarding-heavy platforms, lending and B2B fintechs
  
  

4. SEON

SEON provides a fast, lightweight approach to fraud detection, aimed at fast-growing fintechs, digital banks, and e-commerce platforms. Its solution pulls open-source intelligence (OSINT) and uses device fingerprinting to evaluate risk without requiring heavy integration or costly infrastructure.

It offers a visual scoring engine, flexible pricing models, and no-code rule creation—making it especially appealing to early-stage or scaling companies that need to deploy protection quickly. SEON is particularly well suited for platforms handling large volumes of small transactions or with high fraud exposure via signups and user account creation.

• Strengths: Low-code setup, flexible pricing
• Best for: Startups, challenger banks, early-stage PSPs
  
  

Comparing solutions: What’s right for your platform?

Every platform has strengths. The real question is: what fits your risk profile, growth plans, and operational model?

How Edenred Payment Solutions supports scalable fraud prevention

Choosing the right tool is only part of the equation. Embedding it in your payments infrastructure - without slowing down the customer experience - is where the real challenge lies.

That’s where Edenred Payment Solutions adds value.

We partner with best-in-class providers like Featurespace to offer our clients access to powerful fraud detection technologies from day one. Whether you’re issuing virtual cards, processing payments, or building embedded finance features - fraud prevention is built in, not bolted on.

Our flexible API stack supports easy integration with third-party fraud tools, so you can tailor protection to your platform’s needs.

It’s fraud detection that scales with your business. And it’s already working behind the scenes across multiple regulated use cases - saving time, reducing losses, and building trust.

Final thoughts

Fraud won’t wait.

And while the threat landscape keeps shifting, one thing stays constant: the need for intelligent, flexible, real-time protection.

Choosing the right fraud detection tool isn’t just a box-ticking exercise - it’s a strategic decision that impacts growth, compliance, and customer trust.

With the right tech and partner, you can move fast - without compromising on safety. 

Contact us today 

Explore how Edenred Payment Solutions helps fintechs and payment providers detect and prevent fraud at scale.