Visa to acquire AI-driven payments protection firm, Featurespace

By Gloria Methri

Visa has signed an agreement to acquire Featurespace, an AI-driven payments protection firm, in a move to strengthen its portfolio of fraud detection and risk-scoring solutions.

Since its inception out of Cambridge University’s engineering department, Featurespace has developed innovative algorithmic-based solutions to analyse transaction data and detect even elusive fraud cases.

Antony Cahill, Global Head of Value-added Services at Visa, said, “It is of the utmost importance to provide our clients with solutions that can adapt to and anticipate the changing threat landscape. Featurespace’s strong foundation in AI will enhance our existing product portfolio and enable us to address our client’s most complex and pressing challenges. We look forward to welcoming the Featurespace team to Visa.”

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. This investment builds on Visa’s commitment to ecosystem security. In the last five years alone, the payments giant has invested billions of dollars in technology, including to reduce fraud and enhance network security.

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.”

The transaction is subject to customary closing conditions, including receipt of applicable regulatory approvals. It is expected to close in fiscal year 2025 and will significantly benefit financial institutions, consumers, and the wider payments industry.