Mastercard (NYSE: MA) just announced an acquisition to beef up its capabilities in cybersecurity and threat prevention. It will buy Recorded Future, the world's largest threat intelligence firm. When it comes to companies deeply embedded in the payments industry, it makes sense why Mastercard spent $2.65 billion on the company.
Preventing Fraud Is Important Now More Than Ever
Knowing that Mastercard is doing everything it can to protect its customers' money is essential to keeping the trust it has built over the years. Keeping this trust is important to Mastercard being the payment method of choice for merchants. Collecting fees from merchants when transactions take place at their businesses is one of the main ways Mastercard generates revenue.
When a fraudulent purchase is made using someone's card, banks often reimburse the consumer. When that happens, it comes out of the merchant's wallet, largely in the form of fees and chargebacks.
Ensuring that Mastercard minimizes the threat of fraud that leaves merchants holding the bag allows the company to maintain its position as one of the two leaders in the payment space. The other leader is Visa (NYSE: V).
Having a strong position in the arena is particularly important now as fraud and cybercrime are on the rise. The cost of cybercrime in ...
