Proving that customers are who they claim to be is one of the big challenges for payments providers as eCommerce sales surge. To “advance its identity verification efforts,” Mastercardwill acquire identity verification firm Ekata for US$850 million, the company announced in a Monday, April 19, press release.
NY-based Mastercard stated that “together, Mastercard and Ekata will deliver a more comprehensive identity service that can power real-time decision-making needs, from new account openings to helping merchants assess potential fraud before a payment transaction is authorized.”
“The acceleration of online transactions has thrust global digital identity verification to the forefront as one of the biggest opportunities to build digital trust and combat global fraud,” said Ekata CEO Rob Eleveld. He added that identity verification products should also ensure “customer privacy, control and security.”
Mastercard’s goal is “to secure every transaction and instill trust in every interaction,” said Ajay Bhalla, president of cyber and intelligence solutions at Mastercard.
The release stated that the combined company has the potential “to expand further to real-time payments and cross-border activities. … The addition of Ekata’s technology and engineering teams will help bolster the support Mastercard can provide as a one-stop partner for any consumer, bank, merchant, FinTech (financial technology company) or government’s data, payment and open banking needs.”
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