Koin

Koin: Credit Risk & Fraud Prevention for Brazilian BNPL

Koin is a pioneering Brazilian fintech and a leading provider of Buy Now, Pay Later (BNPL) solutions in Latin America, particularly famous for its "Boleto Parcelado" and "PIX Parcelado" (installment) products. Because Koin acts as both the payment method and the credit issuer, their API performs a simultaneous, real-time assessment of both fraud risk and credit risk, assuming full liability for approved transactions.

Capabilities:

• Dual-Threat Assessment: Evaluates a transaction not just for identity fraud, but also for the consumer's creditworthiness and likelihood of default.
• 100% Liability Shift: For transactions processed through Koin's alternative payment methods, they assume the full credit and fraud risk, guaranteeing you get paid even if the customer defaults or commits fraud.
• Financial Inclusion Data: Utilizes alternative data sources to score unbanked or underbanked Brazilian consumers who might lack traditional credit histories but are legitimate buyers.
• Seamless Local Installments: Enables risk-free installment offerings via Boleto or PIX without tying up the customer's credit card limit.

How It Works With Our Orchestration Engine: Because Koin makes a definitive financial decision on whether they will fund the transaction, their API provides clear status responses (Approved, Pending/Review, Denied). Our orchestration engine maps an "Approved" directly to our Low Risk tier (proceeding with the Koin payment capture), maps "Pending" to Medium Risk (holding the order state while Koin finalizes credit checks), and maps "Denied" to High Risk (blocking the Koin payment, but allowing you to fallback/route to a different payment method like a standard credit card via Adyen).

Risk Tiers

The table below outline how the raw responses and risk scores from each supported provider are mapped to these standardized levels, along with the default routing actions triggered by each tier. Keep in mind that while these represent our standard configurations, you have full control to customize what triggers each risk level to perfectly align with your business's unique risk appetite.

Koin evaluates both fraud and credit risk simultaneously. Their responses dictate whether they will assume the liability for the installment payment.