Mastercard is buying Ekata, a startup that has been rapidly developing AI-powered digital identity tools that weed out online fraud during the recent surge in e-commerce during the pandemic.
The card network is paying $850 million for Ekata, which is based in Seattle with offices in Amsterdam, Singapore and Budapest, according to a Monday press release.
Ekata, founded less than two years ago, aggregates data from merchants, banks and commerce platforms to help customers sort good customers and companies from bad actors in real time during transactions and online account opening, according to the release.
Using AI and machine learning tools, Ekata instantly analyzes global identity data to spot anomalies that signal fraud while it expedites transaction authorizations. Ekata’s technology also protects loyalty programs from pilfering by fraudsters, according to Ekata’s website.
"The shift to a more digital world requires real solutions to secure every transaction and instill trust in every interaction," said Ajay Bhalla, Mastercard's president of cyber and intelligence solutions, in the release.
"The acceleration of online transactions has thrust global digital identity verification to the forefront as one of the biggest opportunities to build digital trust and combat global fraud," said Rob Eleveld, Ekata's CEO, in the release.
Current Ekata customers include Lyft, Affirm and Kount.
Earlier this month Ekata launched a service to
Last year Ekata rolled out
Mastercard said the transaction is expected to close before the end of 2021, pending regulatory approval.
