Prezzee’s U.S. Fraud Crisis: A Costly Hit
Discover how Australian-based Prezzee copes with severe fraud in the USA impacting up to 30% of transactions, driving a significant financial loss.
June 23, 2024
Australian Digital Gift Retailer Prezzee's Market Overview
Prezzee, based in Australia, engages customers who purchase and send digital gifts from approximately 1,400 retailers, including prominent names like Coles Group in Australia and SEPHORA in the USA. Remarkably, more than half of Prezzee's revenue is generated from the USA.
However, the company faces considerable challenges in the USA with fraud affecting up to 30% of transactions, compared to just 0.3% to 0.7% in Australia. This significant discrepancy has contributed to a statutory loss of Au$79.2 million for the 18 months ending in December, following a loss of Au$38.9 million in the previous financial year.
In 2023, Prezzee reported total card sales amounting to $3.4 billion, a significant increase from $1.1 billion in 2022.
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