Visa has announced the signing of a definitive agreement to acquire Featurespace, a firm specializing in real-time artificial intelligence (AI) technology for fraud detection and financial crime prevention. The acquisition aims to bolster Visa’s existing portfolio of fraud detection and risk scoring solutions by integrating Featurespace’s advanced algorithmic services, which enable the analysis of transaction data to detect complex fraud patterns.

Visa representatives emphasized the company’s dedication to providing clients with cutting-edge solutions that can adapt to the rapidly changing threat landscape. By leveraging Featurespace’s expertise in AI, Visa plans to enhance its product offerings and address the sophisticated challenges faced by its clients.

The collaboration between Visa and Featurespace is expected to empower clients to manage fraud in real-time and strengthen the security of the payment ecosystem through AI-powered solutions. This move is part of Visa’s broader strategy to advance its commitment to security, with substantial investments in technology aimed at reducing fraud and optimizing network safety.

According to the press release, the transaction is subject to customary closing conditions, including regulatory approvals, and is expected to be completed in fiscal year 2025. The acquisition is anticipated to deliver significant benefits to financial institutions, consumers, and the overall payment industry.

In addition to the Featurespace acquisition, Visa is set to launch Visa A2A in the UK in early 2025, providing consumers with enhanced control, security, and a seamless digital user experience. The company aims to scale its infrastructure and technology to offer improved usability and dispute resolution services for consumers, banks, and businesses.