Visa has agreed to acquire CardinalCommerce, a provider of payment authentication solutions, as part of its strategy to help thwart fraudulent online transactions.
The proposed takeover will allow more secure, seamless payments, whether executed through a browser, mobile app, or connected device, and will help Visa’s clients and merchant partners accelerate digital commerce.
Subject to the customary closing conditions, the transaction is expected to close in Visa’s second fiscal quarter of 2017. Financial terms of the transaction have not been revealed.
Upon completion of transaction, Cardinal will continue to operate and serve all of its clients as a wholly-owned subsidiary of Visa. Cardinal’s co-founders Tim Sherwin and Chandra Balasubramanian will remain as leaders of the company’s team based in Mentor, Ohio.
Visa senior vice president of risk and authentication products Mark Nelsen said: “This strategic acquisition combines Visa’s industry expertise and Cardinal’s critical role in payment authentication to bring added security to online transactions, reduce fraud, and support digital commerce which is the fastest growing commerce segment today.
“By helping merchants, acquirers, and issuers better distinguish between good and bad transactions, Visa is in an even better position to strengthen consumer trust in digital payments, help merchants grow their businesses, and accelerate innovation in commerce.”
Cardinal founder and CEO Mike Keresman said: “By combining our authentication expertise and role in supporting both merchants and issuers, and Visa’s payments expertise and global reach, our two companies will be able to fast track the next-generation of digital authentication.”