Israel is widely recognized as a worldwide cybersecurity pioneer and a critical innovation hub for the development of tools and resources aimed at preventing cybercrime and managing the escalating digital security risks that businesses face today.
This is well understood by investors.
According to the Israel National Cyber Directorate, the country’s cybersecurity industry will receive a record $8.8 billion in funding in 2021, and the Middle Eastern country is home to one out of every three cybersecurity unicorns worldwide.
However, it is not unexpected that many of Israel’s cybersecurity firms sell their products and services not just to military and intelligence agencies throughout the world, but also to private organizations ranging from banks and FinTechs to online platforms and stores.
Because of Israel’s critical role in the global cybersecurity ecosystem, Israeli firms are highly integrated into payment networks and technologies. Mastercard responded by establishing a FinSec innovation lab in the country last year, with the purpose of developing entrepreneurs working at the intersection of cybersecurity and FinTech.
The incubation program, according to the FinSec lab’s website, will aid enterprises in creating solutions in a range of areas, including digital authentication, threat intelligence and detection, anti-fraud, and anti-money laundering.
Fraud and chargeback prevention
Israeli enterprises are supporting digital payment systems all around the world, at both the service provider and merchant levels, thanks to their superior cybersecurity expertise and flourishing startup culture.
Just recently, an Israeli company used artificial intelligence (AI) to protect businesses against chargeback fraud. The firm’s technology may be linked to the majority of the world’s leading payment providers, such as Visa and Mastercard, as well as existing online payment providers, such as PayPal and Stripe.
