This past week Visa (NYSE: V) 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 payment fraud and financial crime risks. Visa said the acquisition of Featurespace will complement and strengthen its portfolio of fraud detection and risk-scoring solutions used by clients around the world to grow and protect their businesses.
Since its inception out of Cambridge University’s engineering department, Featurespace has developed algorithmic-based solutions to analyze transaction data and detect even the most elusive fraud cases.
“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,” Antony Cahill, Visa’s global head of value-added services said. “We look forward to welcoming the Featurespace team to Visa.”
This new combination will enable clients to manage fraud in real time and further protect the payments ecosystem using AI-fueled solutions. Visa said this investment builds on its commitment to ecosystem security. In the last five years, the company has invested billions of dollars in technology, including to reduce fraud and enhance network security.
“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,” Featurespace founder Dave Excell said. “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.”
Featurespace invented Adaptive Behavioral Analytics, Automated Deep Behavioral Networks and ARIC Risk Hub, technologies designed to combat fraud and financial crime.
The transaction is expected to close in the next fiscal year.
