Mastercard Inc will purchase a Seattle-headquartered digital identity verification company Ekata, in a deal valued at $850 million. The global payment processor acquisition will enable the company to step up its identity verification efforts to curb digital fraud in the finance arena.
As one of the largest companies in the digital payments sector, Mastercard is expected to ensure people are who they claim to be to help curb cyber fraud.
The latest acquisition will reinforce the company’s currently in-play 2019 framework that laid the foundation of how digital identity will build trust, collaboration, and economic growth.
And with people doing more online now than ever, including shopping, digital identity verification is a high priority.
The deal is expected to close in the next six months.
“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., in a statement.
“The right identity verification solutions enable inclusive and frictionless experiences while, at the same time, ensuring customer privacy, control, and security.”
Ekata specializes in providing digital security services, with a presence across e-commerce, payments, and financial services industries. The company helps curb online fraud, which will be a handy addition to Mastercard’s cyber fraud-combating toolkit.
“Becoming part of the Mastercard Identity family ensures a broader, collective approach to meeting the growing demands of the digital economy.”
The digital ID verifications firm has offices in Amsterdam, Singapore, and Budapest, with over 2000 company partners, including Equifax Inc, a credit reporting company, and US-based software company Intuit Inc.