Ekata expected to enable Mastercard in advancing its digital identity strategy
Mastercard has agreed to acquire Ekata, a digital identity verification solutions provider for real-time risk decisioning, for a sum of $850m.
Ekata caters to a range of merchants, financial organisations, marketplaces, travel firms, and digital currency platforms across the world.
The company employs insights for providing unique scores, data attributes, and also risk indicators for businesses to help in improved decision-making.
Its identity verification services are said to help their customers in the real-time identification of good consumers and businesses and bad actors, whether it is for online account opening, payments, or a range of other digital interactions.
Ekata’s product suite is powered by an identity engine, which comprises the Ekata Identity Graph and the Ekata Identity Network data sets.
Its suite of APIs and SaaS solutions are said to help over 2,000 businesses and partners in tackling cyber fraud.
Mastercard cyber and intelligence solutions president Ajay Bhalla said: “The shift to a more digital world requires us to secure every transaction and protect trust in every interaction. Security and a seamless customer experience across entire cyber environments are real problems that deserve real solutions.
“We have an opportunity to ensure that the digital way to prove you are who you say you are and establishing that trust is as easy as it is with paper credentials today. With the addition of Ekata, we will advance our digital identity strategy as part of a broader effort to power the digital economy.”
The technology, data assets, and engineering expertise of Ekata when combined with Mastercard’s own identity solutions, are expected to help strengthen efforts to offer a one-stop partner for consumers, merchants, fintechs, banks, payment, and open banking requirements.
Ekata CEO Rob Eleveld said: “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.”
The deal is expected to close within the next six months, depending on regulatory review and meeting of customary closing conditions.