Stripe, the multi-billion dollar international payments technology firm founded by two Irish brothers, has bought an Irish startup that builds online authentication systems for financial institutions.
The amount being paid by John and Patrick Collison's US based firm for Touchtech Payments has not been disclosed.
The move by Stripe comes ahead of the introduction of Strong Customer Authentication (SCA) across Europe in September.
SCA will require people buying things online across the EU to confirm their identity for the majority of their online purchases, using two authentication methods, such as a password, a phone, or their fingerprint.
As a result hundreds of thousands of European online sellers will have to upgrade their payments platforms to prepare for the upcoming regulation, Stripe said in a blogpost announcing the purchase.
Touchtech Payments provides SCA-ready technology to some of Europe's largest fintech firms and newer banks like N26 and Transferwise.
"Touchtech adds yet another layer to the economic infrastructure Stripe is building for the internet, which is designed to help businesses comply not only with SCA but also with the entire next generation of regional payment regulations," said Will Gaybrick, Stripe's Chief Product Officer.
Currently employing eight staff, Touchtech Payments was founded in 2014 by Shekinah Adewumi and Niall Hogan.
The company was backed by Enterprise Ireland and according to Crunchbase has received $1.4 million in funding over two rounds.
"Touchtech has built up huge strength in their technology, designing and developing an identity verification solution which makes payments easier and more secure," said Julie Sinnamon, Enterprise Ireland CEO.
"The acquisition of Touchtech by Stripe, a company with its own Irish roots, reaffirms the high-quality credentials of Irish startups."
As part of the acquisition, Touchtech will move from its current home at DCU's Alpha campus to Stripe's Dublin engineering hub.
"Stripe has given us more resources, a bigger reach and a great opportunity to continue what we're doing," said Niall Hogan, Touchtech CEO and co-founder.
In January, Stripe said it had raised another $100m in funding, valuing the company at around $22.5 billion.
That investment came just months after the firm raised $245m in extra capital to drive its international expansion.
Founded by the Collison brothers in 2010, Stripe initially built a service to enable businesses to sell and customers to buy easily online.
However, in recent years it has expanded its operations into other areas including a service that helps businesses incorporate more easily called
Atlas, businesses operations software called Sigma, an in-person payments service called Terminal and a fraud detection system called Radar.
In February of last year, the company said it was expanding its engineering team in Dublin, adding dozens of jobs to the 100 already there.
The company today also announced new products and updates to help its customers in Europe prepare for SCA.