Trust is the key ingredient to conducting digital commerce. Central to creating trust in a digital world is the ability to prove your digital identity – who you are, whether you are interacting in person, online or in app.
Today, Mastercard took steps to advance its identity verification efforts with the acquisition of Ekata for US$850 million.
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,” according to the press release.
„The shift to a more digital world requires real solutions to secure every transaction and instill trust in every interaction,” said Ajay Bhalla, president of cyber and intelligence solutions at Mastercard. „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.„
Ekata’s identity verification data, machine learning technology and global experience combined with Mastercard’s fraud prevention and digital identity programs will help businesses confidently know 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,” said Rob Eleveld, CEO at Ekata, Inc. „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.”
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.
As with past acquisitions, Mastercard does not expect this acquisition to be dilutive to its business for greater than 24 months. This dilution is driven by investments in the business, including the impact of purchase accounting and integration related costs.
The transaction is subject to regulatory review and customary closing conditions. It is anticipated to close within the next six months.
Banking 4.0 – „how was the experience for you”
„So many people are coming here to Bucharest, people that I see and interact on linkedin and now I get the change to meet them in person. It was like being to the Football World Cup but this was the World Cup on linkedin in payments and open banking.”
Many more interesting quotes in the video below:
