Growth equity firm Spectrum Equity has closed its sale of anti-fraud solution Ethoca to Mastercard, for an undisclosed amount.
Ethoca is a collaboration-based technology provider which helps card issuers, ecommerce merchants and online businesses around the world increase card acceptance, stop fraud, recover lost revenue and eliminate chargebacks.
Ethoca gives Mastercard the tools to increase its security activities, data insights, and AI solutions in order to boost anti-fraud efforts.
Spectrum Equity initially led a minority recapitalisation of Ethoca in 2015 to partner with the management team and accelerate revenue growth through direct and partnership channels and boosting product innovation, it said.
Over the course of the four-year partnership, Ethoca completed several strategic initiatives, including the growing number of merchants and issuers partaking in the global collaboration network. It also released the real-time data network Eliminator to help merchants and card issuers collaborate and reduce disputes and friendly fraud.
Ethoca CEO Andre Edelbrock said, “Ethoca’s mission has always been to help card issuers and online merchants increase card acceptance and stop ecommerce fraud to simplify and improve the payment process. As a partner, Spectrum Equity understood the complexities of our market segment and provided deep domain expertise and advice at every stage of our global expansion.”
Earlier in the month, Mastercard formed a partnership with payment solutions and card issuing company Edenred to release a pilot biometric card in Mexico.
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