Mastercard to acquire identity-verification firm Ekata for $850M

Payments giant Mastercard plans to acquire Ekata, a 2-year-old Seattle based company that focuses on APIs and SaaS digital-identity solutions that help more than 2,000 businesses and partners combat cyberfraud. The transaction is subject to regulatory approval.

Why should we care?
Digital identity companies that help prevent fraud are a competitive space in fintech, with companies like Socure, Trulioo, Jumio, and Feedzai jockeying for a piece of an expanding market. With Ekata, Mastercard gains a tool that can figure out the online identity of a person making a transaction in real time. Using its suite of tools, Ekata can determine if the person or business entity carrying out the transaction is fraudulent, and it can also assign a score that predicts the likelihood of authenticity of a transactor’s stated identity. Ekata and Mastercard say they will together deliver a more comprehensive identity service that can carry out real-time identity decision-making needs, from new account openings to helping merchants assess potential fraud before a payment transaction is authorized. "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, in a statement. "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."