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

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

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

“The acceleration of on-line transactions has thrust international digital identification verification to the forefront as one of many largest alternatives to construct digital belief and fight international fraud,” mentioned Rob Eleveld, chief government officer of Ekata, in an announcement.

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

Its merchandise, which embrace Ekata Identification Graph and Ekata Identification Community, permit firms to fight on-line fraud, it mentioned.

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

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

The funds processor mentioned the deal is anticipated 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.

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