Mastercard is set to acquire digital identity provider Ekata for $850 million.

Ekata’s solution seeks to verify the online identity of a person making a transaction in real-time, using various indicators to provide a score which determines the risk of fraud, like a credit score.

The Seattle-based company was spun-out in June 2019 from an existing background checking company called White Page Pro.

Ekata claim to work with 2,000 companies, in e-commerce, payments and financial services, including Sage, American Airlines, Intuit, Equifax, and Lyft.

The identity provider said its business has been boosted by the pandemic and reported a 33 per cent growth in revenues and a 70 per cent increase in transaction volumes in EMEA for 2020.
Mastercard said the deal is still subject to regulatory review and is anticipated to close within the next six months.

The payments giant has been active in the payments space in the past year, it’s $1 billion acquisition of data analytics company Finicity was approved by the US Department of Justice in November.


"The shift to a more digital world requires real solutions to secure every transaction and instill trust in every interaction," said Ajay Bhalla, president of cyber and intelligence solutions at Mastercard.

"With the addition of Ekata, we will advance our identity capabilities and create a safer, seamless way for consumers to prove who they say they are in the new digital economy."

“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, chief executive at Ekata. "The right identity verification solutions enable inclusive and frictionless experiences while, at the same time, ensuring customer privacy, control and security.”

He added: “Becoming part of the Mastercard Identity family ensures a broader, collective approach to meeting the growing demands of the digital economy.”

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