American Express Acquires InAuth in another Boost for Authentication

Demand at the network level for digital authentication capability got another boost last week when American Express acquired Boston-based startup InAuth. The deal arrived directly on the heels of Visa’s purchase of CardinalCommerce and continues to signal the importance of delivering secure authentication in an environment where an ever-expanding share of online transactions are performed on mobile devices.

InAuth, founded in 2011, uses device identification to authenticate users for e-commerce merchants, banks, health care providers and others. American Express said the company’s platform, along with technology from previous acquisitions like Accertify, will provide another layer of security and fraud protection for its merchants at a time when the EMV implementation in the U.S. is just beginning to show the expected surge in card-not-present fraud.

“Security is part of our heritage, and helping our merchants and partners fight fraud is a top priority for American Express,” said Anré Williams, president of Global Merchant Services & Loyalty Group at American Express. “We’re acquiring the right company at the right time to evolve our leadership position in fraud management and security. This acquisition will help us continue to offer security and protection to our merchants and partners as mobile and online spending drive commerce.”

Just as Visa announced regarding CardinalCommerce, American Express said InAuth will keep its branding and operate as a wholly owned subsidiary. Financial terms of the agreement were not disclosed.

Be sure to read up on all the acquisitions we reported on this year and what impacts they will have on 2017. Read more here.