Mastercard (NYSE: MA) has entered into an agreement to acquire Ethoca, a global provider of technology solutions that assist in card fraud prevention, identification and resolution in digital commerce.
Ethoca, founded in 2005, currently brings together over 5,000 merchants and 4,000 financial institutions worldwide. When the Company identifies a fraudulent transaction, near real time information is sent to the merchant so they can confirm, stop or reverse the charge.
“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” said Ajay Bhalla, president of cyber and intelligence solutions for Mastercard.
Mastercard plans to combine Ethoca’s capabilities with its current security measures, data insights and artificial intelligence solutions to help merchants and card issuers more easily identify and stop fraudulent purchases.
Terms of the transaction have not been disclosed; the deal is expected to close in the second quarter of 2019.
According to Juniper Research, annual online payment fraud losses from digital commerce, airline ticketing, money transfer and banking services, will reach USD 48 billion by 2023; up from the USD 22 billion in losses projected from 2018. Over the next five years, retailers are expected to lose USD 130 Billion in online fraud.
Last week Mastercard also announced its acquisition of Transfast, a global account-to-account money transfer network. The transaction is expected to close in the second half of 2019.