The combined expertise of Visa and Featurespace will enable clients to manage fraud in real-time and further protect the payments ecosystem using AI-fueled solutions. While the world’s largest payments processor did not reveal the value of the acquisition, a Sky News report, last month, citing sources, had pegged it at £700 million ($935.06 million).
Visa announced it has signed a definitive agreement to acquire Featurespace, a developer of real-time artificial intelligence (AI) payments protection technology that prevents and mitigates payments fraud and financial crime risks. „The acquisition of Featurespace will complement and strengthen Visa’s portfolio of fraud detection and risk-scoring solutions used by clients around the world to grow and protect their businesses.” – according to the press release.
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.
Antony Cahill, Global Head of Value-added Services at Visa, 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.”
This investment builds on Visa’s commitment to ecosystem security. In the last five years alone, Visa has invested billions of dollars in technology, including to reduce fraud and enhance network security. In July, Visa said it prevented 80 million fraudulent transactions worth $40 billion globally last year thanks to investments in AI.
Dave Excell, Founder of Featurespace, added: “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.”
While the world’s largest payments processor did not reveal the value of the acquisition, a Sky News report, last month, citing sources, had pegged it at £700 million ($935.06 million).
Britain’s IP Group – Featurespace’s largest shareholder and its first institutional investor – said it expects to receive £134 million in cash from the takeover. It has invested a total of £22.9 million in the company over seven financing rounds.
The transaction is subject to customary closing conditions, including receipt of applicable regulatory approvals. The transaction is expected to close in fiscal year 2025 and will provide significant benefits to financial institutions, consumers, and the wider payments industry.
____________
Featurespace is a leader in enterprise technology that prevents fraud and financial crime. The company helps banks and financial institutions protect customers, reducing risk and business operating costs by providing industry-leading machine learning, fraud & financial crime prevention solutions via its award-winning platform.
Over 80 direct customers and 100,000 businesses have put their trust in Featurespace’s technology including HSBC, NatWest, TSYS, Worldpay, Danske Bank, Akbank, Edenred and Permanent TSB. Founded in 2008, and headquartered in Cambridge, UK, Featurespace has over 400 team members, operating globally from six locations. Featurespace, backed by global investors including Chrysalis Investments, Highland Europe, IP Group plc, Insight Partners, MissionOG, and TTV Capital, has been at the forefront of developing technology to combat fraud and financial crime worldwide.
Banking 4.0 – „how was the experience for you”
„So many people are coming here to Bucharest, people that I see and interact on linkedin and now I get the change to meet them in person. It was like being to the Football World Cup but this was the World Cup on linkedin in payments and open banking.”
Many more interesting quotes in the video below:
