AI-Powered Casap Raises $25M to Revolutionize Payment Dispute Resolution

AI-Powered Startup Tackles Payment Disputes and First-Party Fraud

Casap, an innovative AI-powered payment disputes platform, has successfully raised $25 million in a recent funding round, bringing its total funding to $33.5 million 1

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. The investment was led by Emergence Capital, with participation from Lightspeed Venture Partners, Primary Venture Partners, and SoFi, among others 1

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The Growing Challenge of First-Party Fraud

First-party fraud, where customers intentionally deceive financial institutions, has become a significant concern in the financial services industry. It now accounts for 30-50% of total fraud losses 1

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. Unlike third-party fraud committed by external actors, first-party fraud is more challenging to detect as it involves the actual account holders 2

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Casap's AI-Driven Solution

Casap aims to address this issue by modernizing the dispute resolution process for financial institutions. The platform's key features include:

1. AI Agents: Handling the entire dispute lifecycle, from intake to chargeback filing and member communication 1

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2. Unified System: Replacing multiple tools with a single, comprehensive solution for faster case resolution 2

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3. Evidence Analysis: AI-powered analysis of evidence and outcome prediction 1

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4. Automated Actions: Streamlining processes such as issuing credits, filing chargebacks, and responding to merchants 1

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5. Fraud Scoring: A proprietary system to identify suspicious consumers and merchants, proactively reducing disputes 1

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Impressive Results and Client Success

Financial institutions using Casap's technology have reported significant improvements:

• Over 50% reduction in fraud losses 1

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• Positive return on investment (ROI) within weeks 1

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• Ability to handle increased case volume without additional headcount 1

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Specific examples include Chartway FCU and MidSouth Community FCU, which have seen fraud losses decline by more than 51% 2

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Future Plans and Industry Impact

With the new funding, Casap plans to:

1. Upgrade its first-party fraud scoring capabilities 1

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2. Enhance AI decision-making processes 1

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3. Expand its workforce 2

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4. Support broader use cases across the payments lifecycle 2

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Shanthi Shanmugam, CEO of Casap, emphasizes the platform's potential to transform dispute experiences into a loyalty driver and competitive advantage for financial institutions 1

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. Carlotta Siniscalco, partner at Emergence Capital, highlights the importance of earning trust in finance and how Casap turns emotionally charged moments into opportunities 2

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As financial institutions face pressure to improve consumer retention, reduce losses, and maintain regulatory compliance, Casap's AI-driven approach offers a promising solution to modernize one of the most outdated and expensive workflows in financial services 1

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