The Multiply by Alpha filter ensures the transparency in an image is stored using a premultiplied alpha representation.
Some apps, such as compositing software and game engines, expect premultiplied alpha even though an image file format may store a non-premultiplied alpha representation by default.
When an image containing non-premultiplied alpha data is composited using a system that expects premultiplied alpha data, a halo effect may be noticeable along semi-transparent edges, for example.
The filter addresses this by converting to premultiplied alpha, enabling improved antialiasing along the edges.
This filter can be found in the Colours category. It has no customisable settings.