Equifax to Expand Digital Identity and Fraud Capabilities with Acquisition of Midigator
Equifax recently announced a definitive agreement to acquire Midigator LLC, a provider of post-transaction fraud mitigation solutions. Midigator solutions complement the Equifax Kount Identity Trust Global Network, which uses award-winning Artificial Intelligence (AI) to link trust and fraud data signals from 32 billion digital interactions, 17 billion unique devices, and five billion annual transactions across 200 countries and territories. As the global ecommerce market continues to change with sales expected to reach 5.5 trillion in 2022, transaction and chargeback disputes are climbing - driving the need for more automated, data-driven chargeback prevention and dispute management.
How will this acquisition strengthen Equifax’s identity and fraud portfolio?
With global omnichannel digital payments expected to grow from 2.6 billion users in 2020 to over 4.4 billion in 2025, dispute and chargeback rates present growing problems for businesses around the world.
“We’re energized to grow our Identity & Fraud portfolio with the acquisition of Midigator. The New Equifax is much more than a credit bureau and Midigator expands Equifax’s robust differentiated data assets to bring global businesses the information and solutions they need to better manage fraud across the complete customer lifecycle,” said Mark W. Begor, CEO of Equifax. “With our Equifax Cloud™ driven data & analytics capabilities and the powerful combination of Midigator and our Kount Identity & Fraud solutions, Equifax is poised to capitalize on new revenue streams and relationships, broadening our digital identity footprint in a fast growing space.”
How did Midigator address the growing issue of chargebacks within the marketplace?
Midigator was founded by merchants to solve real merchant challenges. The founders were successful ecommerce entrepreneurs who were looking to address the fact that increasing chargebacks made it difficult to scale their business. Nearly a decade later, companies ranging from startups to established brands use Midigator solutions to provide intelligent dispute responses, in-depth analytics, real-time account reporting and dispute processes. These solutions are offering companies the ability to have a deeper understanding as to why chargebacks were taking place and what preventative actions were available to combat them. The goal is ultimately to help businesses understand their customers better.
When you combine Midigator with Equifax, what type of opportunities open up with digital identity and fraud prevention?
According to Sid Singh, President of United States Information Solutions (USIS) at Equifax, there is strong demand from clients and partners for digital identity and fraud prevention solutions that encompass the entire customer journey, specifically around the desire to mitigate and manage post-transaction issues. And, much of this demand is coming from organizations in industries that weren’t prone to friendly fraud before. “By combining our Kount pre-authorization and preventative protection capabilities with Midigator’s intelligent post-authorization and automated chargeback technologies, we’ll be able to provide a more complete solution that enhances the customer experience, while helping businesses protect and recover revenue,” said Singh.
Equifax is proud to build on the strength of its rapidly expanding Kount business and expand its global footprint in digital identity and fraud prevention solutions. Helping companies and people protect their data in real-time, in the real world.