Payment processing giant, Mastercard (NYSE:MA) will tie up with Feedzai, a regulatory technology platform to detect and prevent fraud that is routed to bank accounts through cryptocurrency exchanges. The company told CNBC that Feedzai aims to prevent and detect fraud using artificial intelligence (AI).
Feedzai will integrate directly with Mastercard’s CipherTrace Armada platform through this tie-up. This platform helps banks monitor more than 6,000 crypto exchange transactions for fraud, money laundering, and other suspicious activity.
As a part of this partnership, Mastercard’s CipherTrace Armada will be integrated directly into Feedzai’s technology for real-time alerts on suspicious crypto transactions. The partnership also grants Mastercard access to Feedzai’s AI capabilities for identification and blocking of fraudulent transactions while recognizing legitimate ones. The CNBC report cited Feedzai data that stated that around 40% of scam transactions currently flow directly from bank accounts to crypto exchanges.
Is Mastercard a Buy, Sell, or Hold?
Analysts remain bullish about Mastercard with a Strong Buy consensus rating based on 22 Buys and two Holds. Year-to-date, Mastercard stock has rallied by more than 16% and the average MA price target of $447.82 implies an upside potential of 11.87% at current levels.
