Visa has agreed to acquire Featurespace, a developer of real-time artificial intelligence (AI) payment protection technology that prevents payment fraud and financial crime risks.
Featurespace was established in 2008, as a spin-out of Cambridge University’s engineering department.
The company has developed advanced algorithmic-based solutions to analyse transaction data and detect even the most elusive fraud cases.
Currently, more than 80 direct customers and 100,000 businesses use its technology, including HSBC, NatWest, TSYS, Worldpay, Danske Bank, Akbank, Edenred and Permanent TSB.
The transaction is expected to close in fiscal year 2025, subject to customary closing conditions, including receipt of applicable regulatory approvals.
Featurespace founder Dave Excell said: “Over the past 12 years we have served the financial services industry, building a company that has gone from strength to strength, and we are thrilled to become a 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.”
According to Visa, the proposed acquisition will complement and strengthen its portfolio of fraud detection and risk-scoring solutions used by clients to grow and protect their businesses.
The combined expertise of Visa and Featurespace would help clients manage fraud in real time and further protect the payments ecosystem using AI-powered solutions.
Also, the acquisition is expected to provide significant benefits to financial institutions, consumers, and the wider payments industry.
In the last five years, the payment technology company has invested billions of dollars in technology, including reducing fraud and enhancing network security.
Visa value-added services global head Antony Cahill said: “Providing our clients with solutions that can adapt to and anticipate the changing threat landscape is of the utmost importance.
“Featurespace’s strong foundation in AI will enhance our existing product portfolio and enable us to address our clients’ most complex and pressing challenges. We look forward to welcoming the Featurespace team to Visa.”
In December last year, Visa agreed to acquire a majority stake in Mexico-based payments processor Prosa to expedite the adoption of secure and innovative digital payments in Mexico.
