Mastercard announced that it has acquired identity verification company Ekata for US$850 million as digital identity is a foundational part of Mastercard’s multi-layered approach to security.
In 2019, the company introduced a new framework on how digital interactions should evolve, as well as how digital identity will build trust, collaboration and economic growth.
That framework is now in use across a number of sectors, from education to travel to healthcare.
Ekata works with a wide range of global merchants, financial institutions, travel companies, marketplaces and digital currency platforms. The company uses insights to deliver unique scores, data attributes and risk indicators that businesses then use to make more informed decisions.
They help their customers identify good consumers and businesses and bad actors in real-time during online account opening, payments and variety of other digital interactions.
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 or government’s data, payment and open banking needs.
The combined capabilities across digital-first, installment and crypto payment services will help to enable greater choice and functionality, with the potential to expand further to real-time payments and cross-border activities.
The transaction is subject to regulatory review and customary closing conditions. It is anticipated to close within the next six months.
“The shift to a more digital world requires real solutions to secure every transaction and instill trust in every interaction.
With the addition of Ekata, we will advance our identity capabilities and create a safer, seamless way for consumers to prove who they say they are in the new digital economy.”
said Ajay Bhalla, President of Cyber and Intelligence Solutions at Mastercard.
“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.
The right identity verification solutions enable inclusive and frictionless experiences while, at the same time, ensuring customer privacy, control and security. Becoming part of the Mastercard Identity family ensures a broader, collective approach to meeting the growing demands of the digital economy.”
said Rob Eleveld, CEO at Ekata.
Featured image credit: Pexels
This article first appeared on fintechnews.ch
