Mastercard Incorporated (NYSE:MA) disclosed that it will acquire global threat intelligence company Recorded Future from Insight Partners for $2.65 billion.

This acquisition enhances Mastercard’s cybersecurity services, strengthening the insights and intelligence crucial for securing the digital economy, including the payments ecosystem.

Also Read: Mastercard Plans To Eliminate About 1,000 Jobs: Report

Recorded Future, which has more than 1,900 clients, offers real-time threat visibility by analyzing extensive data sources, helping customers mitigate risks.

Recorded Future’s use of AI and advanced technologies will enhance Mastercard’s identity, fraud prevention, decision-making, and cybersecurity services, expanding threat intelligence capabilities for merchants and financial institutions.

Mastercard and Recorded Future both expect to use AI to analyze billions of data points to identify potential threats and protect people and businesses.

Craig Vosburg, Chief Services Officer at Mastercard, said, “Recorded Future adds to how we deliver that greater peace of mind before, during and after the payment transaction. Together we will innovate faster, create smarter models and anticipate emerging threats before cyberattacks can take place – in payments and beyond.”

The transaction is expected to close by first-quarter 2025, subject to regulatory review and other customary closing conditions.

With the introduction and adoption of new technologies, the risk of cyber threats is increasing. Notably, as per Statista, cybercrime is projected to cost $9.2 trillion globally in 2024.

Last week, Mastercard launched Payment Passkey Service globally to boost online security using tokenized transactions and biometrics.

The service aims to reduce fraud and enhance approval rates, expanding from its initial pilot in India to a global rollout.

As of June 30, 2024, Mastercard’s cash and cash equivalents stood at $9.13 billion.

Investors can gain exposure to the stock via iShares U.S. Financial Services ETF (NYSE:IYG) and BlackRock Long-Term U.S. Equity ETF (NASDAQ:BELT).

Price Action: MA shares are up 0.20% at $489.14 premarket at the last check Thursday.

Photo via Shutterstock

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This article Mastercard Expands Cyber Defense With $2.65B Deal For Recorded Future - What's On The Cards? originally appeared on Benzinga.com

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