Visa announced it has signed a definitive agreement to acquire Featurespace, the real-time artificial intelligence (AI) payments protection technology business.
The acquisition is aimed at strengthening Visa’s portfolio of fraud detection and its ability to combat fraud and financial crime.
Featurespace, founded at Cambridge University, utilises advanced algorithms to analyse transaction data and detect even sophisticated fraud attempts.
“Since its inception out of Cambridge University’s engineering department, Featurespace has developed innovative algorithmic-based solutions to analyze transaction data and detect even the most elusive fraud cases,” Visa explained in its press release.
“Providing our clients with solutions that can adapt to and anticipate the changing threat landscape is of the utmost importance,” said Antony Cahill, Global Head of Value-added Services at Visa.
He added: “Featurespace’s strong foundation in AI will enhance our existing product portfolio and enable us to address our clients’ most complex and pressing challenges.”
It is expected that the combined expertise of Visa and Featurespace will help clients with real-time fraud management powered by AI.
In the last five years, Visa has invested billions of dollars in technology to reduce fraud and enhance network security.
Dave Excell, Founder of Featurespace, said the company is “thrilled to become part of Visa.”
“With Visa, we can bring the innovation, integrity and purpose of our platform and our team to more payment service providers and ultimately, stop more people from becoming victims of financial crime,” he added.
The transaction is expected to close in fiscal year 2025.