Shieldpay, the UK-based payments company, that helps attorneys manage client money in-house, now counts 44 law firms as customers.
It's a milestone for a fintech company that’s been in operation since 2016. Its technology enables companies to deliver secure payments and manage risk from fraudulent transactions.
“As the industry starts to embrace digital change, processes like handling client money will be streamlined and there will be numerous benefits,” said Geoff Dunnett, director of Shieldpay Professional Services said in a recent report. “Speed, security, and transparency are set to increase as the adoption of Shieldpay and our Third Party Managed Account solution grows.”
Among the law firms using Shieldpay are White & Case and Cooley, two large international law firms. White & Case of New York has been around since 1901 while Cooley is a Silicon Valley-based establishment. The law firms are using Shieldpay for a range of payment services from corporate escrow transactions to litigation funding. According to the company Shieldpay provides law firms and other types of businesses with added security for transactions. It also claims to boost transparency, reduce the threat from cybercriminals and lowers the costs of regulatory compliance.
Shieldpay is among the digital payment companies that are trying to help clients combat fraud. According to the company, payment fraud increased by 53% year on year, amounting to as much as £11bn annually. The company which has the backing of the Financial Conduct Authority protects buyers and sellers in any transaction by confirming the identities of both parties. Funds are kept in the Shieldpay vault. While the U.S. has been slower to adopt digital payments, faster payments have become a way of life in the UK.
But that convenience also comes with risk. Fraudsters are trying to cash in on the movement to faster payments given the money can be funneled from an account before a person realizes it. According to Shieldpay in the first year of faster payments in the UK there was a 132% increase in fraudulent transactions. Authorized push payment scams where consumers are tricked into transferring money raised £354 million for criminals in 2018 alone. Of that only £83 million was recovered.
Aiming to secure all transactions, in December of 2018 Shieldpay inked a partnership with Visa to enable the secure use of payment cards on marketplaces and classified websites.
“The Visa and Shieldpay partnership is game changing for the digital peer to peer marketplace and classified ad world. Fraud is a huge concern for users of these platforms, and the security Visa and Shieldpay can now offer will revolutionise the space,” said Shieldpay Chief Executive Peter Janes at the time. “The team at Shieldpay continually strives to offer the most secure payment solutions to give consumers complete peace of mind when buying and selling online. Partnering with Visa will give us a strong platform for expansion and enhance our product offering by leveraging our combined assets. We are excited about the future and what we can build alongside Visa.”