New Capabilities Strengthen Trust in Every
Interaction Through AI-Powered Identity Verification Reinforced By
Commitment to Strong Data Management Principles
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 (NYSE: MA) took steps to advance its identity
verification efforts with the acquisition of Ekata for US$850
million.
Digital identity is a foundational part of Mastercard’s
multi-layered approach to security. In 2019, the company introduced
a new framework on how digital interactions should evolve, as well
as how digital identity will build trust, collaboration and
economic growth. That framework is now in use across a number of
sectors, from education to travel to healthcare.
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.
"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.”
Ekata is headquartered in Seattle, with offices in Amsterdam,
Singapore and Budapest.
Delivering on the Strategy,
Strengthening Value
Commitment to Privacy, Responsibility - Ekata shares
Mastercard’s commitment to safe and secure data practices centered
around the individual, further reinforcing their value to the end
user.
Strong Identity Technology - Ekata has built a core set
of identity verification services that helps to provide the
backbone of the safety and security of everyday commerce. By
bringing the capabilities, technologies and teams together, there
is the potential to deliver even more trust and peace of mind, well
beyond identity verification and identifying fraud trends.
Complementary Expertise - The addition of Ekata's
technology and engineering teams will help bolster the support
Mastercard can provide as a one-stop partner for any consumer,
bank, merchant, fintech or government’s data, payment and open
banking needs. The combined capabilities across digital-first,
installment and crypto payment services will help to enable greater
choice and functionality, with the potential to expand further to
real-time payments and cross-border activities.
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.
About Mastercard
Mastercard is a global technology company in the payments
industry. Our mission is to connect and power an inclusive, digital
economy that benefits everyone, everywhere by making transactions
safe, simple, smart and accessible. Using secure data and networks,
partnerships and passion, our innovations and solutions help
individuals, financial institutions, governments and businesses
realize their greatest potential. Our decency quotient, or DQ,
drives our culture and everything we do inside and outside of our
company. With connections across more than 210 countries and
territories, we are building a sustainable world that unlocks
priceless possibilities for all. www.mastercard.com
About Ekata
Ekata Inc, is the global leader in digital identity verification
solutions that provide businesses worldwide the ability to link any
digital transaction to the human behind it. The Ekata product suite
is powered by the Ekata Identity Engine, comprised of two
proprietary data sets — the Ekata Identity Graph and the Ekata
Identity Network. Ekata's global suite of APIs and SaaS solutions
help 2,000+ businesses and partners combat cyberfraud and enable an
inclusive, frictionless experience in over 230 countries and
territories.
Forward-Looking Statements
This press release contains forward-looking statements pursuant
to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. All statements other than statements of
historical facts may be forward-looking statements. When used in
this press release, the words “believe,” “expect,” “could,” “may,”
“would,” “will,” “trend” and similar words are intended to identify
forward-looking statements. Examples of forward-looking statements
include, but are not limited to, statements that relate to
Mastercard’s future prospects, developments and business
strategies, as well as Mastercard’s acquisition and operation of
Ekata. We caution you to not place undue reliance on these
forward-looking statements, as they speak only as of the date they
are made. Except for the company’s ongoing obligations under the
U.S. federal securities laws, the company does not intend to update
or otherwise revise the forward-looking information to reflect
actual results of operations, changes in financial condition,
changes in estimates, expectations or assumptions, changes in
general economic or industry conditions or other circumstances
arising and/or existing since the preparation of this press release
or to reflect the occurrence of any unanticipated events.
Many factors and uncertainties relating to the proposed
transaction, our operations and our business environment, all of
which are difficult to predict and many of which are outside of our
control, influence whether any forward-looking statements can or
will be achieved. Any one of these factors could cause our actual
results or the impact of the acquisition to differ materially from
those expressed or implied in writing in any forward-looking
statements made by Mastercard or on its behalf. Such factors
related to the completion and impact of the acquisition include,
but are not limited to, whether all necessary conditions will be
met, and whether the transaction will close on agreed terms and in
a timely manner.
For additional information on other factors related to
Mastercard’s overall business that could cause Mastercard’s actual
results to differ materially from expected results, please see the
company’s filings with the Securities and Exchange Commission,
including the company’s Annual Report on Form 10-K for the year
ended December 31, 2020, and any subsequent reports on Forms 10-Q
and 8-K.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210419005519/en/
Mastercard Investor Relations: Gina Accordino,
investor.relations@mastercard.com, 914-249-4565 Mastercard
Communications: Seth Eisen, Seth.Eisen@mastercard.com, 914-249-3153
Ekata: Beth Shulkin, Beth.Shulkin@ekata.com, 206-679-2983
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