Mastercard to acquire Ekata to advance its digital identity capabilities
By Pavithra R
Mastercard has announced its plan to advance its identity verification efforts with the acquisition of Ekata for US$850 million.
Digital identity is a foundational part of Mastercard’s multi-layered approach to security. The firm in 2019 introduced a new framework on how digital interactions should evolve, as well as how digital identity will build trust, collaboration and economic growth. This framework is now being used across many sectors, from education to travel to healthcare.
Ekata is the new standard in global identity verification, providing businesses worldwide the ability to link any digital transaction to the human behind it. The firm 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 use to make informed decisions. Businesses leverage its product suite to increase approvals of more good transactions, reduce customer friction at account opening, and find fraud.
“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.
Ekata’s identity verification data, machine learning technology and global experience combined with Mastercard’s fraud prevention and digital identity programs will help businesses to identify who their customers are and, in turn, help those customers safely interact online. Mastercard and Ekata’s integrated services will build on both companies’ commitments to ensure trust and the responsible use of data.
“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.
The addition of Ekata’s technology and engineering teams will help bolster the support Mastercard provide as a one-stop partner for consumers, banks, merchants, fintechs or government’s data, payment and open banking needs. Together, the companies 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.
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May 26, 2023
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