Equifax and Mastercard Join Forces to Combat Payment Fraud in Latin America

Rhea-AI Summary

Equifax (EFX) and Mastercard (MA) have partnered to combat payment fraud in Latin America through the integration of Kount Payment Fraud solution with Mastercard's fraud management tools. The collaboration aims to protect digital payments through identity verification and fraud risk assessment while preventing chargebacks.

The initiative addresses a critical need in Latin America, which has one of the highest fraud rates globally, with merchants losing approximately 4.6% of e-commerce revenue to payment fraud. With regional e-commerce revenue projected to grow from $85 billion in 2021 to $160 billion by 2025, this partnership seeks to enable secure business growth.

The Kount Payment Fraud solution, currently used by over 20,000 businesses in more than 40 countries, will be available to financial institutions, payment service providers, acquirers, and merchants across Latin America, excluding Brazil.

Positive

• Partnership with Mastercard expands Equifax's fraud prevention services in Latin America
• Addresses a large market with e-commerce revenue expected to reach $160 billion by 2025
• Potential revenue growth opportunity in a region losing 4.6% of e-commerce revenue to fraud

Negative

• Exclusion of Brazil limits market reach in Latin America
• High regional fraud rates may pose implementation challenges

Mastercard Now Offering Kount Payment Fraud Prevention and Chargeback Mitigation to Payment Providers and Merchants

ATLANTA and NORTHAMPTON, Mass., Dec. 5, 2024 /PRNewswire/ -- Equifax® (NYSE: EFX) and Mastercard (NYSE: MA) have joined forces to empower Latin American financial institutions, payment service providers, acquiring banks, and merchants to overcome payment fraud challenges without disruption to the customer experience.

Enhanced fraud management tools, including Mastercard Identity, Ethoca Alerts and Ethoca Consumer Clarity are now available to Mastercard business customers in Latin America through the Kount Payment Fraud solution from Equifax. The combined solutions protect the entire digital payments environment through identity verification and fraud risk assessment while preventing chargebacks through order validation and alerting services.

Latin America has one of the highest fraud rates globally, with studies showing that merchants are losing upward of 4.6% of their e-commerce revenue to payment fraud. With e-commerce revenue expected to nearly double in the region from $85 billion in 2021 to $160 billion by next year, Equifax and Mastercard are helping empower businesses to achieve their full growth potential by stopping threats in real time.

The Kount Payment Fraud solution from Equifax is used by more than 20,000 businesses operating in more than 40 countries around the world due to its real-time fraud prevention capabilities during transactions.

"As a global leader in fraud prevention, we are thrilled to work with Mastercard to help Latin American merchants and partners combat fraud and continue to innovate across the financial sector," commented Chris Jones, President of Equifax Latin America. "This strategic alignment will provide safer payment transactions and reduce chargebacks, enabling businesses of all sizes in Latin America to improve their bottom line."

"Adding to our existing capabilities, this collaboration is the next step in our journey to make the digital economy safe and more seamless for payment providers and merchants in the region," said Ana Lucia Magliano, Executive Vice President, Services, Mastercard Latin America and the Caribbean. "By working together, we're advancing our shared goal of not only meeting the payments ecosystem security needs, but also addressing a broader effort to enhance the consumer's digital experience."

The Kount Payment Fraud solution is available in collaboration with Mastercard to financial institutions, payment service providers, acquirers, merchants and others across Latin America, excluding Brazil. For more details, visit https://kount.com/equifax-mastercard.

ABOUT EQUIFAX INC.
At Equifax (NYSE: EFX), we believe knowledge drives progress. As a global data, analytics, and technology company, we play an essential role in the global economy by helping financial institutions, companies, employers, and government agencies make critical decisions with greater confidence. Our unique blend of differentiated data, analytics, and cloud technology drives insights to power decisions to move people forward. Headquartered in Atlanta and supported by nearly 15,000 employees worldwide, Equifax operates or has investments in 24 countries in North America, Central and South America, Europe, and the Asia Pacific region. For more information, visit Equifax.com. 

ABOUT MASTERCARD
Mastercard is a global technology company in the payments industry. Our mission is to connect and power an inclusive, digital economy that benefits everyone, everywhere by making transactions safe, simple, smart and accessible. Using secure data and networks, partnerships and passion, our innovations and solutions help individuals, financial institutions, governments and businesses realize their greatest potential. With connections across more than 210 countries and territories, we are building a sustainable world that unlocks priceless possibilities for all.

FOR MORE INFORMATION:
Mario Arrua (Latin America) or Tiffany Smith (US) for Equifax
mediainquiries@equifax.com 

Andrea Denadai for Mastercard
Andrea.denadai@mastercard.com 

 

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SOURCE Equifax Inc.

FAQ

What is the partnership between Equifax (EFX) and Mastercard for Latin America?

Equifax and Mastercard have partnered to provide enhanced fraud management tools, including Mastercard Identity, Ethoca Alerts, and Ethoca Consumer Clarity through the Kount Payment Fraud solution to combat payment fraud in Latin America.

How much are Latin American merchants losing to payment fraud?

Latin American merchants are losing approximately 4.6% of their e-commerce revenue to payment fraud.

What is the projected e-commerce revenue growth in Latin America?

E-commerce revenue in Latin America is expected to grow from $85 billion in 2021 to $160 billion by 2025.

How many businesses currently use Equifax's (EFX) Kount Payment Fraud solution?

The Kount Payment Fraud solution is currently used by more than 20,000 businesses operating in more than 40 countries worldwide.