PAAY
PAAY is a New York-based fintech providing processor-agnostic EMV 3-D Secure authentication for card-not-present online transactions. It serves SMB and enterprise merchants, high-risk verticals, and payment service providers through white-label partner integrations and direct API/SDK deployments.
- Company typePrivate
- Founded2011
- HeadquartersNew York, United States
- Headcount1–10
- GTM typeB2B
- OfferingSoftware
What PAAY does
PAAY is a New York-based fintech founded in 2011 that provides EMV 3-D Secure (3DS 2.1 and 2.2) authentication for card-not-present (CNP) online transactions. The company operates as a dedicated, processor-agnostic authentication layer that sits between merchant checkout and any payment processor or gateway, collecting 150+ data points per transaction (device intelligence, behavioral signals, transaction context) and routing authentication requests through card network directory servers to issuing banks for real-time risk-based decisions. PAAY holds PCI DSS Level 1, PCI 3DS, EMVCo 3DS, and PSD2/SCA certifications, supporting all major card networks (Visa Secure, Mastercard Identity Check, Amex SafeKey, Discover ProtectBuy, JCB J/Secure) through a single integration. The platform integrates via JavaScript SDK (drop-in script tag) or Direct API (server-to-server), with add-on modules for Data Only/Data Share (enriched data without challenge flow) and 3RI authentication (merchant-initiated transactions for recurring billing and card-on-file). Reported performance metrics include sub-200ms response times, 99.99% uptime SLA, up to 85% frictionless authentication rates versus a 64% global average, 45% lower fraud rates on authenticated transactions (11 bps vs 20 bps per Visa), and up to 9% authorization rate uplift.
PAAY serves four primary customer segments: SMB merchants processing $50K-$5M/month needing enterprise-grade protection without complexity; enterprise merchants processing $5M+/month requiring customizable flows and advanced analytics; high-risk verticals (nutraceuticals, travel, digital goods, subscriptions, gaming) facing chargeback-ratio threats to merchant account standing; and payment partners including ISOs, PSPs, and payment facilitators who white-label PAAY authentication for their merchant portfolios. The company employs a dual-channel go-to-market: direct sales to merchants via website demos and trials, combined with a partner program offering white-label solutions, single API integration across partner merchant bases, dedicated partner dashboards, and revenue sharing on transaction volumes.
PAAY generates revenue through three streams: usage-based per-transaction authentication fees starting at a few cents, tiered subscriptions (Small Business, Growth, Enterprise) with feature-gated pricing, and transaction-fee revenue sharing with channel partners. Pricing is customized by transaction volume, with no hidden fees or long-term contracts. Disclosed funding totals approximately $1.65M across four rounds dated 2013-2015, with no subsequent institutional rounds in available materials. The company has built an integration network spanning Payway, OpenPath, VGS (Very Good Security), SOLVPATH, Sticky.io, accept.blue, PinPoint Payments, Checkout Champ, FluidPay, and Konnektive, serving 1,000+ partner merchants. Advisory board draws from American Express, Visa, Mastercard, First Data, TSYS, and Paysafe executives.
PAAY firmographics
Firmographics- Name
- PAAY
- Legal name
- PAAY Inc.
- Website
- https://paay.co
- Company type
- Private
- Founded year
- 2011
- Operating status
- Operating
- Headcount range
- 1–10 employees
- Short description
- PAAY is a New York-based fintech providing processor-agnostic EMV 3-D Secure authentication for card-not-present online transactions. It serves SMB and enterprise merchants, high-risk verticals, and payment service providers through white-label partner integrations and direct API/SDK deployments.
- Ownership category
- akta.pro rank
PAAY industry classification
Industry- Product category
- Payment Authentication / Fraud Prevention Software
- NAICS
- Financial Transactions Processing, Reserve, and Clearinghouse Activities (522320)
- akta.pro primary industry
- 3-D Secure (3DS) & Authentication Services (FSAMACAD)
- akta.pro secondary industries
- 3D Secure, Authentication & Access Control (FSAMALAD), Merchant Payment Gateways (API/Hosted Checkout) (FSAMACAA)
Keywords
Where PAAY is headquartered
LocationHeadquarters
- HQ city
- New York
- HQ country
- United States
- HQ region
- North America
Offices1 record
Markets served
PAAY business model
Business model- GTM type
- B2B
- Offering type
- Software
- Cost components
- Technology or R&D, Infrastructure, Personnel, Marketing or Sales, Operations
Revenue model
- Per-Transaction Authentication Fees: PAAY charges merchants on a per-authentication basis, with pricing typically starting at a few cents per transaction. This usage-based model scales with merchant transaction volume and aligns cost with value delivered.
- Subscription Plans: Tiered subscription plans (Small Business, Growth, Enterprise) provide authentication services with varying feature sets. Plans include full EMV 3DS authentication, liability shift protection, and varying levels of support and analytics depending on tier.
- Partner Revenue Sharing: ISOs, PSPs, and payment facilitators earn revenue sharing on every transaction their merchants process through PAAY. Partners receive competitive revenue sharing based on transaction volumes processed through their merchant portfolios.
Pricing tiers
| Model | Billing | Price |
|---|---|---|
| Subscription | Annual | Premium Widget Pro - Annual subscription at $299.00 |
| Usage-based | Monthly | Small Business plan - For growing e-commerce businesses |
| Usage-based | Monthly | Growth plan - For scaling merchants |
| Usage-based | Monthly | Enterprise plan - For large organizations and PSPs |
Go-to-market motion2 records
Distribution channels4 records
Marketing channels7 records
PAAY product offering
Product offeringCore offering
PAAY provides EMV 3-D Secure (3DS 2.1 and 2.2) authentication as a service for card-not-present online transactions. The platform sits between merchant checkout and payment gateways, collecting 150+ data points per transaction and routing authentication requests through card network directory servers to issuers for real-time risk-based approval. It is sold to merchants directly and to payment partners (ISOs, PSPs, payment facilitators) via white-label and revenue-sharing arrangements.
Product overview
PAAY offers a unified EMV 3D Secure authentication platform providing real-time card-not-present transaction verification. The core product is EMV 3DS 2.1 & 2.2 authentication, available via two integration methods: JavaScript SDK (drop-in client-side) and Direct API (server-to-server). Add-on modules include Data Only/Data Share (data enrichment without challenge) and 3RI Authentication (recurring/subscription billing). Pricing spans three tiers: Small Business ($50K-$5M monthly volume), Growth (scaling merchants with advanced analytics), and Enterprise (custom integrations, white-label). The platform delivers sub-200ms response times, 99.99% uptime SLA, and supports all major card networks (Visa Secure, Mastercard Identity Check, Amex SafeKey, Discover ProtectBuy, JCB J/Secure).
Differentiator
Problem solved
Functional benefit
Products and services
- EMV 3D Secure Authentication Platform Flagship EMV 3DS 2.1 & 2.2 authentication solution that authenticates card-not-present transactions in real time using 150+ data points, enabling frictionless approval for low-risk transactions (up to 85%) while shifting fraud liability to card issuers. Designed for merchants, payment facilitators, ISOs, and PSPs.
- JavaScript SDK Drop-in JavaScript integration that handles device fingerprinting, challenge flows, and result callbacks automatically with minimal code. Monitors form fields and includes built-in frictionless and challenge flows. Designed for developers integrating PAAY 3DS authentication.
- Direct API Server-to-server REST API for complete control over authentication flow. Enables custom implementation of browser data collection, device fingerprinting, result polling, and challenge presentation. Built on EMV 3DS protocol v2.2 with JWT (HS256) security. Designed for technical teams needing full control.
- 3RI Authentication 3DS Requestor-Initiated authentication for merchant-initiated transactions including recurring billing, subscriptions, and card-on-file scenarios. Supports liability shift for transactions where cardholder is not present.
- Data Only / Data Share Authentication Sends enriched transaction data to issuers without triggering a challenge. Provides improved approval rates and fraud scoring without customer friction but without liability shift. Returns Status I/E (Visa) or U (Mastercard) with ECI values.
- Premium Widget Pro Annual subscription widget product at $299.00 per year providing a live demo of 3DS authentication flow showing frictionless vs challenge experiences with interactive checkout simulation.
Quantifiable outcome
- Up to 85% frictionless authentication rate
- +8 more outcomes
Companies that use PAAY
Customer profileNamed customers3 records
Segments4 records
Ideal customer profiles4 records
PAAY technology and API
TechnologyTechnology focussed Yes
API detail
- Has API
- Yes
- API docs
- API detail
Core technology
AI maturity
App detail
Integration3 records
AI capability3 records
Feature10 records
PAAY partnerships and signals
Strategic signalPartnerships
Four partnerships are on record, tiered core.
- Very Good Security (VGS)corePartnership combining VGS's payment tokenization (4 billion tokens globally, 70% of US card data stored) with PAAY's EMV 3DS authentication. Enables PAAY merchants to use VGS payments hub and vault for secure PAN sharing and 3DS verification, with 3DS verification shifting liability onto the cardholder's issuing bank. Benefits include secure tokenization and 3DS in single workflow, simplified PCI compliance, and seamless sharing of sensitive card data across PSPs.
- SOLVPATHcorePAAY and SOLVPATH partnered to tackle friendly fraud, which accounts for 75% of all disputes in the US. The partnership combines PAAY's authentication data with SOLVPATH's intelligent support platform, enabling merchants to distinguish between customers who were authenticated at checkout and those who weren't, dynamically adjust support processes based on authentication status, and reduce friendly fraud chargebacks with data-driven decisions.
- OpenPathcoreStrategic partnership integrating PAAY's EMV 3D Secure authentication directly into OpenPath's payment gateway. OpenPath merchants can enable PAAY's 3DS authentication with minimal configuration, benefiting from integrated authentication within the gateway (no separate integration required), liability shift on authenticated fraud chargebacks, increased authorization rates, and frictionless checkout for the majority of transactions.
- PaywaycorePAAY and Payway partnered to integrate EMV 3DS authentication into Payway's payment platform for enterprise merchants. The partnership combines Payway's payment processing expertise (recurring billing, multi-currency, advanced reporting) with PAAY's authentication technology, providing scalable authentication that handles enterprise volumes, 150+ data points for risk-based decisions, and fraud liability protection.
Scale indicators16 records
Recent moves6 records
Expansion highlights7 records
PAAY competitors and assessment
Company assessmentOthers
- Riskified: Riskified provides an AI-driven fraud-prevention and chargeback-guarantee platform serving enterprise e-commerce merchants. While not a 3DS provider, it addresses the same CNP fraud and chargeback problems that drive merchants to PAAY, and is often evaluated as an alternative or complementary solution.
- Kount (Equifax): Kount, now part of Equifax, is a fraud-prevention platform offering identity verification, device fingerprinting, and risk scoring. While its core focus is fraud scoring rather than 3DS authentication, it overlaps with PAAY's device-intelligence and behavioral-signal data collection, and competes for the same fraud-management budget.
- Sift: Sift operates a digital trust and safety platform providing fraud detection, device fingerprinting, and risk scoring for e-commerce merchants. While positioned as a fraud-scoring platform rather than a 3DS authentication provider, it competes indirectly for the same merchant fraud-management budget and is frequently evaluated alongside PAAY.
Broad incumbents
- Checkout.com: Checkout.com is a global payment processor offering built-in 3DS authentication as part of its unified payments platform. Competes with PAAY for enterprise merchants and PSPs seeking authentication solutions, typically as part of broader payment-processing relationships.
- Adyen: Adyen is a global payment processor that bundles 3DS authentication into its unified commerce platform. While not a focused 3DS provider like PAAY, it competes for the same merchant authentication budget — PAAY explicitly positions itself as an alternative to Adyen's built-in 3DS.
- Stripe: Stripe offers integrated 3DS authentication within its core payments API and Radar fraud product. PAAY explicitly cites Stripe (alongside Adyen and Braintree) as the bundled-3DS competitor it differentiates against, serving merchants who want processor-agnostic authentication.
Emerging players
- Signifyd: Signifyd provides a commerce protection platform centered on fraud guarantee and chargeback management, overlapping with PAAY on the chargeback-reduction value proposition. While not a 3DS provider, it competes for the same fraud and chargeback budget that drives PAAY adoption, particularly with high-risk merchants.
Direct peers
- GPayments: GPayments is a dedicated 3DS provider offering ActiveServer (3DS Server) and ActiveAccess (ACS) for merchants, acquirers and issuers. Comparable to PAAY in product scope and customer base, particularly for PSPs and acquirers seeking standalone 3DS infrastructure.
- Netcetera: Netcetera operates a 3-D Secure Access Control Server (ACS) and 3DS Server platform serving European issuers and merchants. It competes head-to-head with PAAY in the 3DS authentication stack, with similar compliance positioning (PSD2 SCA) and similar targeting of acquirers and payment processors.
- CardinalCommerce: CardinalCommerce is one of the original EMV 3D Secure authentication providers, now owned by Visa. It offers a near-identical product (3DS authentication, MPI/3DS Server) to PAAY across the same merchant and card-network ecosystem, and is the most direct competitive comparison for PAAY in North America.
Market position
Strengths5 records
Weaknesses5 records
Competitive moat6 records
Key risks6 records
Key highlights7 records
Customer concentration
PAAY social profiles
Digital presencePAAY compliance and trust
Trust signalCompliance4 records
PAAY financial estimates
Financial estimateRevenue estimate
Valuation estimate
PAAY leadership team
Management profileNumber of profiles
Profiles10 records
PAAY funding detail
Funding detailFunding overview
Funding rounds4 records
Investors
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
PAAY M&A and investment
M&A and investmentM&A
Investments
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about PAAY
What does PAAY do?
PAAY provides EMV 3-D Secure (3DS 2.1 and 2.2) authentication as a service for card-not-present online transactions. The platform sits between merchant checkout and payment gateways, collecting 150+ data points per transaction and routing authentication requests through card network directory servers to issuers for real-time risk-based approval. It is sold to merchants directly and to payment partners (ISOs, PSPs, payment facilitators) via white-label and revenue-sharing arrangements.
Is PAAY a public or private company?
PAAY is a private company. It is classified as founder individual operated bootstrapped and is currently operating.
When was PAAY founded?
PAAY was founded in 2011. It employs 1 to 10 people.
Where is PAAY based?
PAAY is headquartered in New York, United States, in the North America region.
How does PAAY make money?
Three revenue lines are on record. Per-Transaction Authentication Fees are the primary driver. The others are subscription Plans and partner Revenue Sharing.
Who are PAAY's main competitors?
Others on record are Riskified, Kount (Equifax) and Sift. Broad incumbents are Checkout.com, Adyen and Stripe. Signifyd is listed as an emerging player. Direct peers are GPayments, Netcetera and CardinalCommerce.
Does PAAY have an API?
Yes. PAAY offers two API integration paths for EMV 3DS authentication: (1) JavaScript SDK - a drop-in solution with a single script tag that handles device fingerprinting, challenge flows, and result callbacks automatically, and (2) Direct API - a server-to-server integration providing full control over browser data collection, fingerprinting, result polling, and challenge presentation. Both are built on EMV 3DS protocol v2.2. Sandbox environment available at api-sandbox.3dsintegrator.com; production at api.3dsintegrator.com. Authentication supports JWT (HS256 algorithm) as optional security layer. Status codes include Y (Authenticated), N (Not Authenticated), C (Challenge Required), A (Attempted), U (Unavailable), R (Rejected). Developer documentation is at docs.paay.co/docs.
What industry is PAAY in?
PAAY's product category is Payment Authentication / Fraud Prevention Software. Its primary akta.pro industry code is FSAMACAD, 3-D Secure (3DS) & Authentication Services, with a secondary code of FSAMALAD, 3D Secure, Authentication & Access Control. Its NAICS code is 522320.