Mastercard Moves to Secure the Future of Credit by Backing Startups Fighting Fraud and Cybercrime

Mastercard has announced a new initiative to support startups engaged in developing products and services aimed at enhancing cybersecurity, mitigating fraud, and strengthening the overall payment ecosystem. The move stands to safeguard numerous participants in the credit card arena, including issuers, merchants, and cardholders.

Mastercard’s latest step to combat payment fraud falls under the umbrella of its Start Path program, which empowers startups whose missions align with Mastercard’s business and strategies to access partnerships and resources.

Start Path began in 2014, and the program has helped more than 475 startup businesses in countries around the world in its relatively short existence.

A recent report estimates that cybercrime will cost the world more than $15 trillion by 2029.

Credit card fraud is a threat to the security of payment processing. A recent report revealed that bad actors have perpetuated fraud against 63% of people in the U.S. who use credit cards, with 51% experiencing multiple instances of fraud.

A Mastercard report indicates that cybercrime is on pace to cost the world approximately $15.6 trillion by 2029.

“Measured in terms of GDP, only the economies of the United States and China are bigger,” the report’s authors wrote. “But that explosion in criminal activity is being met by a wave of innovation in cybersecurity, fraud mitigation, and anti-money laundering technologies, all aimed at securing the digital ecosystem.” 

The prevalence of fraud ensures that no single credit card issuer can completely prevent it from impacting its customers. But working with innovative startups that offer tools to detect and prevent fraud can help issuers strengthen their card programs. 

Mastercard’s Start Path makes it easier for the company’s partners to benefit from the cutting-edge solutions that high-potential startups can offer.

The latest group of startups participating in the enhanced program include OneID, Scamnetic, Shield-IoT, Spec, and VanishID. Mastercard selected these companies following a competitive application process.

Artificial intelligence stands to be a crucial component of detecting fraud in the coming years. A trade group representing payments processors recently urged members of Congress to “avoid regulating AI in any way that would hamper payments companies’ use of the evolving tool.” 

Mastercard offers a suite of cybersecurity tools and harnesses AI-powered solutions to stay at the forefront of shielding payments stakeholders from cybercrime.

By engaging with innovative startups, Mastercard is helping issuers that partner with the global payment network stay ahead of emerging fraud threats.

Johan Gerber, Mastercard’s Executive Vice President and Head of Security Solutions, said in a press release announcing the company’s new initiative that security is “essential to fueling digital commerce in an increasingly connected world, where new threats emerge all the time.”

“By partnering with startup innovators who are already working to protect our ecosystem, we are accelerating co-creation and knowledge-sharing — shaping a safer, smarter digital world,” Gerber continued.