The acquisition comes amid growing demands in the digital security space. Here are the top-line bullets you need to know.
Global payments giant Mastercard has acquired Ekata, a digital identity and security platform provider, in a $850M deal.
Who are the parties to the deal?
- Ekata: Seattle-based Ekata uses information collected from various sources to provide unique scores, data attributes, and risk indicators to aid companies with identity verification. The company’s flagship software-as-a-service (SaaS) product “Pro Insight,” analyzes risk and signals. Its products help clients authenticate identities in real-time in account opening, payments, or various other digital processes. Formerly known as Whitepages Pro, Ekata serves over 2,000 companies including Equifax, Intuit, and Lyft, among others.
- Mastercard: Headquartered in New York, Mastercard is a major multinational payments processor company that acts as a link between banks of merchants and the banks of the purchasers. Customers can utilize the Mastercard debit, credit or prepaid cards for online transactions. Its brands include MasterCard, Maestro, and Cirrus.
Why does the market matter?
The acquisition strengthens MasterCard’s position in the digital identity solutions space at a time when:
- The digital identity solutions market is projected to grow at a CAGR of 16.9% to reach a value of $45.2B by 2027, according to Verified Market Research.
- Major companies are expected to increasingly adopt digital identity solutions to reduce risk exposure as digital transactions become more common than ever.
- The integration of biometrics in smartphones is also fueling the growth of the market.