Mastercard Acquires Online Processor DataCash

PURCHASE, N.Y. — Mastercard, the world’s second biggest payments network, has acquired DataCash, a U.K. processor of Internet credit card sales, for $520 million in cash to expand its e-commerce offerings.

DataCash provides software to link online retailers with their payment systems and also offers merchants fraud prevention services. The company also does some processing for online adult sites.

DataCash posted $58 million in revenue last year. It currently provides services primarily to European businesses, but company Chairman Ashley Head said the acquisition “represents a significant opportunity for DataCash to drive increased adoption of our platforms and programs internationally.”

Company executives say the move is expected to help Mastercard bolster online use of cards that bear its name and create a long-term growth platform.

The acquisition will also allow the company to increase the use of Mastercard-branded credits and prepaid products as well as Mastercard debit products for online purchases, particularly in Europe and Asia

Ajay Banga, MasterCard's chief executive, isn't ruling out other acquisitions. MasterCard "has the bandwidth and capability to keep looking at opportunities," he said in a call with analysts and investors to discuss the transaction.

Mastercard and DataCash didn’t immediately return calls to XBIZ by post time.