MasterCard Incorporated (MA), a payment processing company that provides services in the cashless economy, announced that it had acquired Ekata, a company that develops identity protection solutions and data security. It is anticipated that the transaction will close in the next six months.
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With the help of Ekata, users can use software tools to protect themselves from identity thefts when interacting with financial services such as online bank account opening and online shopping. About 2,000 companies are in Ekata’s network of partners, including big businesses such as Lyft, Postmates, and Alaska Airlines. More than 300 new partners joined Ekata during the past year, which led to a sharp uptick in revenue.
MasterCard acquired Ekata for $ 850 million. In addition to new features that enhance a payment service’s capabilities, adding the ability to manage personal data will make online payments safer and more accessible for consumers. Mastercard has not provided any details concerning how its ownership of Ekata could affect its financial performance. However, the MA stock stated the acquisition should not result in a loss for at least 24 months.
Cashless payment services require increased security since they involve electronic transactions. A report from online security company Signal Sciences indicates that online merchants had to defend themselves against an average of 206,000 cyberattacks every month in 2020. Data protection solutions will thereby continue to be in great demand, at least in the medium term. By acquiring a security vendor, Mastercard may incorporate innovative solutions into its transaction processing system more quickly. Also, Mastercard now has access to Ekata’s solid customer base.
MasterCard Incorporated (MA) is up 5.52% on its value for the year to date. MA stock has reached highs and lows in the current 52-week trading range, $244.10 and $389.50. Yesterday’s trading session saw the MA stock hovering about $376.63, or -1.45% off its median target price of $401.00 for the next 12 months.
