Local financial authentication company Entersekt has acquired Modirum 3-D Secure, a software business unit of digital payment security provider Modirum, for an undisclosed amount.
According to a statement, with this acquisition, Entersekt plans to expand its customer base and presence globally, to secure over 2.5 billion transactions per year.
Modirum enables authenticated, card-not-present payments, and has a history dating back 25 years.
Its cloud-based 3-D Secure (3DS) technologies and services authenticate digital payment transactions globally across numerous payment systems, as well as enable 3DS transactions for hundreds of millions of cardholders.
The 3DS capability requires customers to complete an additional verification step with the card issuer when paying.
“The combined capabilities of Entersekt and Modirum will allow us to offer a wider set of solutions and provide our customers with more data sources to use when protecting against fraud,” says Schalk Nolte, co-founder and CEO of Entersekt.
“At the same time, we are expanding the types of markets and customers we can serve, enabling us to scale globally and grow faster. Entersekt allows the financial world to access one cross-channel platform for secure, frictionless, context-aware authentication of customers and payments alike.”
For 13 years, South African-born Entersekt has helped financial institutions reduce fraud losses, grow revenue and maintain regulatory compliance, it says.
Entersekt notes it will add Modirum’s 3DS solutions to its Entersekt Secure Platform for transaction authentication, and the Modirum 3DS team will join the company.
The acquisition accelerates product development, expands Entersekt’s existing product offering and strengthens the company’s ability to scale and support customers around the world, while adding a highly-skilled team, it adds.
Modirum also brings more customers on-board, increasing Entersekt’s market share of financial institutions using 3DS.
“We are pleased to align our 3DS solution and talented team under one unified brand, to meet the market’s growing demand for an integrated digital payment security platform,” comments Modirum CEO Jari Heikkinen.
“By converging these key fraud prevention capabilities and breaking down silos, Entersekt enables higher transaction success rates, reduced false declines, less fraud for financial institutions and an improved experience for consumers overall.”
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