Mastercard Inc. has recently completed a deal to purchase Recorded Future, a cyber-defense company, for $2.65 billion in a bid to strengthen the security of its vast global payments network. This acquisition from Insight Partners, a private equity firm, is aimed at enhancing the credit card giant’s use of artificial intelligence to protect against cyber threats and fraud.
Insight Partners had acquired a majority stake in Recorded Future back in 2019 for over $780 million in a cash transaction. With a clientele of more than 1,900 customers across 75 countries, Recorded Future’s expertise is vital in light of the growing global menace of cybercrime, which is expected to cost the world $9.2 trillion this year.
According to a recent report by Bloomberg, Craig Vosburg, Mastercard’s Chief Services Officer, highlighted that this collaboration will drive innovation, improve the creation of intelligent models, and enable proactive measures against potential cyber threats. The deal is anticipated to be finalized by the first quarter of the upcoming year.
In another strategic move, Mastercard has expanded its support for non-custodial cryptocurrency wallets by teaming up with Mercuryo, a European crypto payments infrastructure provider, to introduce a euro-denominated debit card. This card allows users to spend their self-stored cryptocurrencies, such as Bitcoin, at over 100 million merchants worldwide within the Mastercard network.
Furthermore, in a bid to further integrate into the digital assets sector, Mastercard has partnered with MetaMask, developed by ConsenSys, to launch a crypto card that aims at enabling smoother transactions between digital assets and everyday spending. This collaboration signifies Mastercard’s commitment to incorporating cryptocurrencies into the mainstream consumer market.
The evolution towards self-custody in the cryptocurrency realm is evident, where individuals have full control over their private keys and financial assets, contrasting with traditional custodial wallets where third parties manage security. Although self-custodial wallets offer increased autonomy, they also place the responsibility of security squarely on the users.