Mastercard has gone all in on cyber security by buying out the world’s largest threat intelligence company Recorded Future for $2.65bn.
The New York-based global payments firm and card issuer bought Recorded Future from Insight Partners. The takeover will provide Mastercard with enhanced insights to fuel product innovation, the firm states, with a focus on intelligence and security.
Mastercard also hopes that its global reach and customer base will provide an opportunity for Recorded Future to grow even more. Headquartered in Massachusetts, Recorded Future is active globally, with 1,900 clients across 75 countries.
Its client base includes the governments of 45 countries and half of the Fortune 100 group of companies. The firm’s use of Artificial Intelligence (AI) is also of interest to Mastercard, which aims to reinforce trust in its brand by combining teams, technology and expertise in these areas.
“Fifteen years ago, we created Recorded Future with a simple goal to secure the world with intelligence,” said Christopher Ahlberg, CEO of Recorded Future.
“By joining Mastercard, we see an opportunity to help more businesses and governments determine the steps to realise their full potential – and to enable everyone to feel safer in their daily lives.”
Cyber security and cybercrime have become increasingly important considerations for a range of payments stakeholders, from small startups to huge giants in the sector like Mastercard.
The American multinational has cited data projecting that cybercrime will cost $92trn annually in 2024 alone. The rapid digitization of payments over recent years, the widespread adoption of blockchain and crypto in the field, and acceleration of AI development has made cyber security even more challenging.
On the other hand, some of these technologies have also been enhancing anti-crime measures, including cyber security, anti-money laundering (AML) and anti-fraud. AI in particular is being leveraged increasingly by payments firms, Mastercard included.
The duo have already been working together prior to the acquisition’s announcement. Earlier this year, the firms launched a jointly-produced AI-backed service that alerts financial institutions when a card is likely to have been compromised.
Craig Vosburg, Chief Services Officer at Mastercard, said: “Trust is the foundation of any relationship. 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.”
Mastercard expects the transaction to conclude in the first quarter of 2025, subject to regulatory approvals.
