As the payment industry works to address security and fraud, they're moving beyond being consumers of security technology and becoming acquirers. Mastercard's recent acquisition of Recorded Future is the latest example of this trend. Jordan McKee and Scott Crawford return to discuss the dynamics on both sides of this equation with host Eric Hanselman. This is only the latest of nine transactions for Mastercard and it indicates the need for greater payment security in a number of ways. As transaction security is ratcheted up, attackers are shifting tactics. Identity fraud has become the stage on which this struggle is playing out. Fraud liability can fall to merchants and fraud prevention can build value for issuing banks. At the same time, banks want to minimize false declines to encourage use of their cards.

Mastercard isn't the only payment company making acquisitions and it raises the question of this becoming a more viable exit path for security companies. The $2.65 billion deal is the thirteenth largest by a strategic acquirer in the 451 Research M&A Knowledgebase. American Express, Discover and Visa have been active in dealmaking, as well, but not yet at this scale.

More S&P Global Content:

• A primer on payments orchestration
• Security Summer Camp 2024 and the elephant in the room
• For Mastercard, the future will be recorded
• MAKB Deal Analysis
• Payments, fraud prevention enhance strategic value for merchants – Highlights from VotE: Customer Experience & Commerce
• Emerging fraud typologies primer, Part 1: Fighting 'friendly fraud' in e-commerce

Credits:

• Host/Author: Eric Hanselman
• Guests: Scott Crawford, Jordan McKee
• Producer/Editor: Donovan Menard
• Published With Assistance From: Sophie Carr, Feranmi Adeoshun, Kyra Smith