Mastercard bets on safety and digital id with $850M Ekata deal

(Reuters) — Mastercard stated on Monday it had agreed to purchase digital id verification firm Ekata in a deal valued at $850 million, as the worldwide funds processor bets on a increase in demand for corporations within the digital safety area.

Ekata’s merchandise enable companies to separate fraudsters from reputable prospects throughout digital interactions like opening a web based account or making digital funds. It operates in three industries: e-commerce, funds and monetary providers, in line with its web site.

“The acceleration of on-line transactions has thrust world digital id verification to the forefront as one of many largest alternatives to construct digital belief and fight world fraud,” stated Rob Eleveld, chief government officer of Ekata, in a press release.

Seattle-headquartered Ekata counts greater than 2,000 corporations as its companions, together with credit score reporting firm Equifax and software program agency Intuit, its web site confirmed.

Its merchandise, which embody Ekata Identification Graph and Ekata Identification Community, enable corporations to fight on-line fraud, it stated.

In February, Ekata stated its income had surged in 2020, because the COVID-19 pandemic accelerated the adoption of e-commerce, boosting demand for providers to safeguard in opposition to cyber fraud.

Ekata added 300 new prospects final 12 months, together with meals and grocery-delivery startup Postmates, which was acquired by Uber Applied sciences final 12 months.

The funds processor stated the deal is predicted to shut within the subsequent six months, including that it doesn’t count on the deal to be a drag on its enterprise for greater than two years.