Fraud Prevention: Mastercard Acquires Ethoca

Mastercard enters an agreement to acquire Ethoca, a global provider of technology solutions relying on collaborations between card issuers and e-merchants.

No details as to the financial terms of this transaction have been disclosed. The acquisition is expected to close in Q2 2019.
help merchants identify and deal with e-commerce fraud cases more quickly.
Through this acquisition, and based on Ethoca’s technology, when a fraudulent transaction is detected, the information is automatically sent to the merchant so they can confirm it, stop delivery or reverse the transaction to avoid chargeback processes.

Ethoca: Key Figures

issuing banks

merchants

1.6 Bn alerts sent to merchants

7.3 Bn unpaid debt avoided

A win-win agreement. Ethoca is a major asset for Mastercard considering their new IT strategy. Mastercard claims to intend to further boost the Canadian FinTech’s capabilities.
Improving customer experience. According to a study by Juniper Research, merchants may lose nearly $130 billion to fraud over the next 5 years. In this context, Mastercard will rely on Ethoca’s technology to assist retailers through decreasing fraud levels. This should contribute to reducing the number of complaints while improving user experience.

Mastercard acquired several fraud prevention specialists over the years. In April 2017, they bought out NuData Security, a FinTech focusing on online and mobile fraud prevention based on biometric patterns.
Ethoca keeps growing more popular: less than three months ago, this FinTech announced a strategic partnership with Cartes Bancaires to launch a fraud prevention tool.

Category : Alertes quotidiennes