Ondot Systems provides a real-time platform and a white-label app or API that lets consumers and issuers manage fraud alerts, transaction limits, purchase-location restrictions and rich merchant data. It integrates with credit, debit and gift card providers and is used by over 4,300 card issuers across four continents to serve millions of cards. The platform applies machine learning to authorization and historical data to deliver proximity controls, merchant specifications and enhanced transaction visibility. Ondot reports a 23 percent increase in card usage and approximately a 25 percent reduction in fraud among users. The company says the investment from Citi Ventures will support growth of its international presence and product offerings. Headquartered in Santa Clara, California, Ondot focuses on increasing mobile engagement and personalizing payment experiences for cardholders and issuers. Ondot Systems developed CardControl, a white‑label solution that allows card issuers to let customers lock/unlock cards, set location and merchant‑type restrictions, define transaction types and spend limits, and receive transaction alerts. The platform aggregates controls into a single mobile app and also provides balance views, spending analysis and offers. Ondot built the product over two years and sells it to banks and card issuers via partnerships with four major card processors that handle transactions for 10,000 banks and credit unions across the U.S. The company advertises use cases including parental controls and employee or provider card management. Lone Star National Bank is a reported client and, after a year using Ondot, experienced a 60% reduction in fraud costs, a 54% increase in card usage, a 48% increase in card spend, and a cardholder base increase of over 15%. The bank reported fraud losses fell from $450,000 in 2012 to $180,000 in 2013 after adopting the service.

Total raised

$18M

Funding rounds

2

Latest round

Equity

Latest activity

Apr 2014