Just days after announcing its acquisition of global cross-border account-to-account money transfer network, Transfast, credit card giant Mastercard announced on Tuesday it has entered into an agreement to acquire Ethoca, a global provider of technology solutions that help merchants and card issuers collaborate in real-time to quickly identify and resolve fraud in digital commerce.
It was revealed that the Ethoca suite of products adds to Mastercard’s commitment to driving greater protection in the digital space, integrating with its robust suite of fraud management and security products. Mastercard also reported that the Ethoca network brings together more than 5,000 merchants and 4,000 financial institutions around the world.
“When a fraudulent transaction is identified, near real-time information is sent to the merchant so they can confirm the transaction, stop delivery or reverse the transaction to avoid the chargeback process. As a result, both merchants and card issuers benefit from lower operational costs by reducing fraud at the source.”
Speaking about the acquisition, Ajay Bhalla, President of Cyber and Intelligence Solutions for Mastercard, stated:
“Advancements in technology are enabling us to transform the experience for our customers. 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.”
Andre Edelbrock, CEO of Ethoca, went on to add:
“Mastercard is a natural home for Ethoca. For more than a decade, we’ve connected e-commerce businesses with banks to make the payments system simpler and more secure. We are excited to have the opportunity to bring our services to more places and people, ultimately contributing to the best possible online payment experience.”