Mastercard Acquires Ethoca to Reduce Digital Commerce Fraud
March 12 2019 - 10:00AM
Business Wire
Mastercard (NYSE: MA) today announced 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.
The Ethoca suite of products adds to Mastercard’s commitment to
drive greater protection in the digital space, integrating with its
robust suite of fraud management and security products.
Today, 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.
Mastercard intends to further scale these capabilities and
combine Ethoca with its current security activities, data insights
and artificial intelligence solutions to help merchants and card
issuers more easily identify and stop potentially fraudulent
purchases and false declines.
“Advancements in technology are enabling us to transform the
experience for our customers,” said Ajay Bhalla, president of cyber
and intelligence solutions for Mastercard. “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.”
According to Juniper Research, retailers are expected to lose
$130 billion in online fraud over the next five years. In addition,
research firm Aite Group estimates that false declines – when card
issuers decline transactions from good customers due to a perceived
fraud risk – cost the industry $331 billion in 2018 in the U.S.
alone.
“Mastercard is a natural home for Ethoca,” said Andre Edelbrock,
CEO of 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.”
Terms of the agreement were not disclosed and the transaction is
anticipated to close in the second quarter of 2019.
About Mastercard
Mastercard (NYSE: MA), www.mastercard.com, is a
technology company in the global payments industry. Our global
payments processing network connects consumers, financial
institutions, merchants, governments and businesses in more than
210 countries and territories. Mastercard products and
solutions make everyday commerce activities – such as shopping,
traveling, running a business and managing finances – easier, more
secure and more efficient for everyone. Follow us on
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About Ethoca
Ethoca is the leading, global provider of collaboration-based
technology that enables card issuers, ecommerce merchants and
online businesses to increase card acceptance, stop more fraud,
recover lost revenue and eliminate chargebacks from both fraud and
customer service disputes. Through the Ethoca Network – the first
and only of its kind in the industry – Ethoca is closing the
information gap between card issuers and merchants. This unique
capability makes fraud and customer dispute insight available and
actionable in real time.
Its suite of services delivers significant revenue growth and
cost saving opportunities to more than 5,400 merchants in 40+
countries and more than 4,000 card issuers in 20+ countries. Eight
of the top ten North American ecommerce brands, 14 of the top 20
North American card issuers and six of the top ten UK card issuers
rely on Ethoca solutions and the network that powers them.
Forward-Looking Statements
This press release contains forward-looking statements pursuant
to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. All statements other than statements of
historical facts may be forward-looking statements. When used in
this press release, the words “believe,” “expect,” “could,” “may,”
“would,” “will,” “trend” and similar words are intended to identify
forward-looking statements. Examples of forward-looking statements
include, but are not limited to, statements that relate to
Mastercard’s future prospects, developments and business
strategies, as well as Mastercard’s acquisition and operation of
Ethoca’s business. We caution you to not place undue reliance on
these forward-looking statements, as they speak only as of the date
they are made. Except for the company’s ongoing obligations under
the U.S. federal securities laws, the company does not intend to
update or otherwise revise the forward-looking information to
reflect actual results of operations, changes in financial
condition, changes in estimates, expectations or assumptions,
changes in general economic or industry conditions or other
circumstances arising and/or existing since the preparation of this
press release or to reflect the occurrence of any unanticipated
events.
Many factors and uncertainties relating to the proposed
transaction, our operations and our business environment, all of
which are difficult to predict and many of which are outside of our
control, influence whether any forward-looking statements can or
will be achieved. Any one of these factors could cause our actual
results or the impact of the acquisition to differ materially from
those expressed or implied in writing in any forward-looking
statements made by Mastercard or on its behalf. Such factors
related to the completion and impact of the acquisition include,
but are not limited to, the following:
- whether all necessary conditions will
be met, and
- whether the transaction will close on
agreed terms and in a timely manner.
For additional information on other factors related to
Mastercard’s overall business that could cause Mastercard’s actual
results to differ materially from expected results, please see the
company’s filings with the Securities and Exchange Commission,
including the company’s Annual Report on Form 10-K for the year
ended December 31, 2018, and any subsequent reports on Forms 10-Q
and 8-K.
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version on businesswire.com: https://www.businesswire.com/news/home/20190312005227/en/
Julia MontiJulia.monti@mastercard.com914-217-9533
MasterCard (NYSE:MA)
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