Visa Acquires AI Firm Featurespace To Boost Payment Security

Visa has announced the acquisition of Featurespace, a firm specializing in artificial intelligence (AI) solutions aimed at enhancing payment protection. This acquisition is intended to improve Visa’s fraud detection capabilities and strengthen its ability to address security threats, particularly in the digital asset space.

The company stated that Featurespace’s AI-driven technology, which analyzes transaction data to detect fraudulent activities, will be integrated into Visa’s global network. Visa noted that this will allow the company to offer its clients more advanced defences against financial crime.

Visa Aims To Strengthen Global Fraud Prevention With Featurespace Acquisition

Featurespace’s solutions are designed to identify fraud by analyzing transaction patterns and spotting unusual or suspicious behaviors across various payment types.

According to the company, this acquisition is expected to significantly boost its ability to combat financial crime. Visa highlighted that this move comes as part of its ongoing efforts to enhance the security of its payment systems worldwide.

The company added that by using Featurespace’s smart technology, Visa will be able to offer real-time ways to spot fraud, which is very important as the financial landscape changes quickly.

Dave Excell, the Founder of Featurespace, said the company has been helping banks and other financial businesses for 12 years by making AI-powered tools to keep payments safe.

Excell shared how happy he is about joining Visa, saying that working with such a big company will help Featurespace grow and help more businesses and banks stop fraud. He also mentioned that Featurespace’s goal has always been to protect people from becoming victims of crime, and this deal will help them do that on a bigger level.

Excell added that working with Visa will let Featurespace share its new ideas, honesty, and skills with more payment service providers. He also pointed out that Visa’s global reach will help Featurespace support clients in different parts of the world and give the team better ways to stop fraud.

Visa Wants To Provide Enhanced Tools For Cyber Threat Mitigation

In addition to enhancing Visa’s fraud detection capabilities, the company reported that the acquisition of Featurespace will provide financial institutions and merchants with more robust tools to combat growing cyber threats.

Visa believes that this merger will have a significant impact on the payments industry by reducing the risk of fraud and financial crime on a larger scale.

Moreover, the acquisition is expected to close by fiscal year 2025, subject to regulatory approval and other customary closing conditions.

In a related development, Visa recently partnered with Revolut to offer instant card transfers for business customers through the Visa Direct system. This collaboration, launched last year, is designed to streamline global payment processes for businesses.

The firms said Visa Direct integration on Revolut’s platform allows businesses to transfer funds to over 78 countries within 30 minutes. The service supports more than 50 currencies, simplifying global transactions for Revolut’s business users by requiring only a card number for payment processing.