Mastercard Inc (NYSE:MA) has agreed to acquire NuData Security, a global technology company that helps businesses prevent online and mobile fraud using session and biometric indicators.
Financial terms of the deal were not disclosed.
Mastercard Wants to Make Transactions More Secure
Mastercard said that it is betting on secure technology as the Internet of Things is creating a more digitally-driven and digitally-connected world. The company said that an estimated 50 billion smart devices are expected to be in use across the globe by 2020.
“While such connectivity can create unparalleled convenience for consumers to pay how they want, when they want, it remains critically important to keep all transactions secure,” the company said in a statement.
Mastercard Inc (NYSE:MA) said that the acquisition will also strengthen its efforts around device-level security and authentication, enabling near real-time collaboration between issuers, merchants, and processors. The company plans to integrate NuData to its suite of fraud management and security products.
“Securing all payments today and tomorrow remains a top priority for Mastercard,” stated Ajay Bhalla, president of enterprise risk and security for Mastercard.
“The addition of NuData will build on our layered security strategy to safeguard each and every transaction across the globe. The combination of session and biometric information will provide even richer context around potential cyber and device-specific threats, enabling us to deliver even greater trust and peace of mind,” Bhalla added.
NuData Technology to Detect Fraudsters
NuData’s flagship NuDetect product is designed to identify authentic users from potential fraudsters based on their online, mobile app and smartphone interactions. The software flags users that represent the highest risk.
The technology assesses, scores and learns from each online or mobile transaction to enable merchants and issuers to make near real-time authorization decisions.
“For nearly a decade, we’ve worked to develop innovative solutions to help transform the way banks and merchants digitally interact with consumers. Those efforts will continue and accelerate through our collective enhanced capabilities to secure the digital landscape, while offering an enhanced user experience,” NuData CEO Michel Giasson said.
Shares of Mastercard Inc (NYSE:MA) closed down 0.01% on Wednesday. The stock is up 8.54% year-to-date. During the last 12 months, MA has surged nearly 17%.