American multinational financial services company; MasterCard has acquired Ekata which is an identity verification company for 850 Million United States Dollars. The decision was executed as a result of the swift digital transformations going on in the online commerce space as a result of the still ongoing Coronavirus pandemic.
The move is also MasterCard’s step into strengthening its online identity management capability.
With Ekata which is a software company based in Seattle, Washington, MasterCard essentially has a solution that will make it possible to verify an individual’s online identity when carrying out transactions in real-time.
The software company; Ekata provides a score along with other data which basically predict the likelihood that an individual is exactly who they say they are. It is just like a credit risk score only this time it is specifically for identity.
Ajay Bhalla who is the President of Cyber and Intelligence Solutions at MasterCard made it known that the acquisition of Ekata will aid MasterCard in the growth of its identity capabilities while also creating a seamless and safer way for its customers to prove their identities; show who they really are in the present day digital economy.
MasterCard which is a leader in global payments will be combining its fraud detection solutions with the scoring approach of Ekata in order to effectively put an end to all criminally minded individuals who attempt to carry out illegal activities with its services.
The Chief Executive Officer (CEO) of Ekata; Rob Eleveld, stated that an increase in the number of transactions carried out online had resulted in global digital verification being put at the forefront and becoming a priority as one of the most promising prospects for establishing digital trust while also combating international fraud.
Ekata was previously known as White Page Pro before making the name change to Ekata in June of 2019.
From all indications MasterCard was more than willing to pay top dollar to acquire Ekata especially at a time like this when the solution it provides has become more of an essential necessity.
The purchase is however subject to standard regulatory approval. Back in 2020, regulators stopped the Visa – Plaid deal.
According to report once the acquisition is approved, the deal will be closed at some point in the next six months.
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