Mastercard has agreed a deal to purchase technology solutions provider Ethoca for an undisclosed fee.
Ethoca solutions help merchants and card issuers collaborate in real-time to identify and resolve fraud in digital commerce. Its network brings together more than 5,000 merchants and 4,000 financial institutions.
When fraud is detected, near real-time information is sent to the merchant so the correct solution can be found. Both merchants and card issuers benefit from lower operational costs by cutting off fraud at the source.
“Advancements in technology are enabling us to transform the experience for our customers,” said Ajay Bhalla, president of cyber and intelligence solutions for Mastercard.
“Ethoca is a strong addition to our multilayered cyber strategy, helping customers take immediate action against fraud and eliminate chargebacks before they can occur. In turn, consumers are provided with a better checkout experience every time they shop at a participating site.”
“Mastercard is a natural home for Ethoca,” said Andre Edelbrock, CEO of Ethoca. “For more than a decade, we’ve connected e-commerce businesses with banks to make the payments system simpler and more secure. We are excited to have the opportunity to bring our services to more places and people, ultimately contributing to the best possible online payment experience.”
The deal is expected to complete by the end of Q2 2019.
Mastercard was due a win after it pulled out of buying Earthport, while Visa is still in the mix.
Visa made a surprise £198m ($257m) bid for Earthport. The offer was immediately recommended by the company’s board and put forward to shareholders.
Mastercard made another offer for £233m. This deal was at a 10% premium to Visa’s offer. Subsequently this forced Visa to return with an improved £247m deal.
Mastercard has no dropped out to focus on its acquisition of Transfast.
Fidesmo has also signed a partnership to enable consumers having Fidesmo-enabled wearables tap and pay by adding their Mastercard.
Through ‘Connects with Fidesmo’, consumers can tap and pay without opening a specific app on a smartphone.
With the alliance, consumers seeking analogue wearables can incorporate invisible technology in their devices.
Wearable manufacturers will be able to create Fidesmo devices without any engineering work leveraging the vendor’s turnkey module.
The modules are available in various sizes and ready to be inserted in wearables.