May 22, 2018
Both facets of the card-not-present payments and fraud space yielded significant corporate acquisitions in the last several days. Online payments company PayPal nabbed Swedish mobile point of sale company iZettle and data aggregator TransUnion acquired antifraud technology provider iovation.
Like Square in the U.S., iZettle pioneered payment acceptance via smartphone in Europe, enabling small merchants to accept chip cards using an app on their smartphone. The service launched in 2011 with a reader that accepted chip-and-signature transactions and introduced its chip-and-PIN reader in 2013. According to PayPal CEO Dan Schulman, iZettle’s expertise in digital marketing and mobile POS will enable the online payments pioneer to help businesses “grow and thrive in an omnichannel retail environment.”
The $2.2 billion deal is expected to close in Q3 of this year.
TransUnion’s acquisition of iovation is only the most recent example of enormous data aggregators partnering with antifraud providers. Several years ago, Dublin-based Experian snapped up technology provider 41st Parameter, while the other big-3 credit bureau, Equifax, partnered with ID verification company Jumio in 2014.
TransUnion said iovation’s device ID and authentication capability will bolster the larger company’s plays in the fraud and identity management spaces.
“Our combined solutions will empower trusted relationships by identifying, monitoring and protecting both businesses and consumers as they interact online all around the world,” said Chris Cartwright, president of TransUnion’s USIS division. “Furthermore, our broad coverage of identities and devices will enable continued innovation in advanced analytics to confidently detect threats across channels, markets and geographies, to equip customers to grow and differentiate their businesses by emphasizing superior user experiences at all touchpoints.”
Financial details of the acquisition were not disclosed. Both companies expect the transaction to close by the third quarter of this year.