US-based payment technology corporation Mastercard has entered a collaboration with Worldpay aiming to improve the transaction experience by reducing payment fraud. As per the information detailed in the press release, Mastercard and Worldpay partnered to enhance the transaction experience by supporting merchants in resolving disputes more efficiently and with fewer chargebacks.

The collaboration comes as a response to recent data from Mastercard that reports that industry-wide chargeback volumes are expected to reach nearly 337 million by 2026, a 42% increase from 2023 levels. Mastercard – Worldpay partnership objectives and capabilities As part of this collaboration, Worldpay, which is a global payment technology and solutions company, is set to provide Mastercard’s Ethoca Alerts to its worldwide merchant base. The company’s solution offers an early warning system that supports the prevention of disputes becoming a chargeback and reducing potential financial losses due to fraud.

Ethoca Alerts functions across all payment brands and delivers insights that merchants can leverage to stop the fulfilment of goods and services. Additionally, merchants are not required to change their existing infrastructure or processes to utilise the service. Furthermore, by joining forces, the two companies are also set to improve authorisation rates for merchants, allowing more of the USD 2.3 trillion total transactions Worldpay processes to be completed without being invalidly declined. According to Mastercard’s officials, considering the current environment in which ecommerce is increasing, the company aims to work towards making transactions as safe and as simple as possible for all involved parties.

The partnership with Worldpay is set to extend Mastercard’s technology to more merchants globally and support them in mitigating fraudulent activities. Mastercard and Worldpay intend to work together to advance their shared commitment to developing trust and enabling the global digital economy. Representatives from Worldpay underlined their enthusiasm over receiving the capability to provide Ethoca Alerts to the market in partnership with Mastercard to deliver more value to clients. Some of Worldpay’s main objectives include creating more accessible, flexible, and simple methods to minimise fraud, while also accelerating commerce and protecting consumers and merchants.

The press release also mentions that between 2022 and 2023, Ethoca Alerts allowed the prevention of USD 1.6 billion in fraud due to chargebacks, assisting in the protection of retailers from fraudulent claims. Prior to the current announcement, Worldpay closed its previous sale and started operating as an independent company. The company was set to be overseen by private equity firm GTCR, with a 55% majority ownership interest, while FIS retained a 45% ownership interest. As an independent company, Worldpay aims to provide increased value, innovation, and service to clients via increased investment in product development, technology, and client solutions.

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