The growth of digital transactions (ecommerce and mcommerce) and the importance of securing these transactions have led to some interesting acquisition activity this month. It was announced in Finextra and other outlets that American Express is purchasing InAuth:
Founded in 2011, InAuth uses device authentication to help banks, payment networks and merchants evaluate the potential risk of digital transactions such as customers logging into their accounts on mobile apps or web browsers, or making online purchases.
The deal is designed to help AmEx take advantage of the migration of customers to digital channels for everything from payments to account origination and servicing – a trend that has also seen fraud shift to online and mobile.
This follows a deal last week when Visa purchased CardinalCommerce, an e-commerce authentication specialty firm. More on that deal can be found here.
These acquisitions, plus the announcement of the new 3D Secure, version 2 specifications bode well for the future of a more secure payments environment.
Overview by Sarah Grotta, Director, Debit Advisory Service at Mercator Advisory Group
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