Businesses are racing to update their digital payment services to help protect against fraud with soaring online transactions. Companies that can help make these processes easier are attracting buyers.

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IBM (NYSE: IBM) has bought financial technology company Expertus Technologies Inc. to bolster its electronic payments offerings. The target helps process more than $50 billion in transactions a day.

Banks worldwide are investing around $100 billion to modernize their payment systems and keep up with rivals including PayPal Holdings Inc. (Nasdaq: PYPL) and Square Inc., Shanker Ramamurthy, global managing partner for banking in IBM Services, tells Bloomberg News. More than 1,000 banks, credit unions, regulatory agencies and corporations use Expertus’s payment platform, according to Bloomberg.

Expertus is also one of the largest North American services bureaus of the Society for Worldwide Interbank Financial Transactions, or Swift, a network banks use to manage money transfers and treasury transactions.

“Financial institutions must balance greater demand for secure digital solutions while complying with rapidly evolving regulation,” says Mark Foster, senior vice president, IBM Services. “Expertus’ payment-as-a-service solution expands our hybrid cloud-based payments offerings, transforming payments and treasury management with AI to give financial institutions the flexibility to rapidly innovate and stay competitive as consumer demands evolve.”

Cloud-based payments offer flexibility for financial institutions to develop new consumer services, while also meeting strict regulatory requirements for financial data transmission and fraud detection, according to IBM.

Fraud detection is driving other deals in the sector. Providence Strategic Growth has invested in NoFraud, a prevention software provider to e-commerce companies. The investment comes at a time when the risk of online transaction fraud has increased dramatically in the U.S.

NoFraud helps businesses eliminate card-not-present fraud and chargebacks using real-time technology so companies can fulfill valid orders quickly. Some of NoFraud’s include: Shopify (NYSE: SHOP), BigCommerce and Magento.

“The significant growth of e-commerce since the onset of Covid-19 has been met with heightened levels of fraudulent activity, underscoring the importance of our mission to arm merchants with the protection they need so they can focus on growing their businesses,” says Isaac Gurary, CEO and co-founder of NoFraud.

As long as digital payments keeps evolving, there will be a constant need for companies to update their financial technology offerings, and will look to dealmaking for help.