(26 September 2024 – United Kingdom) Visa has announced its agreement to acquire UK-based fraud detection firm Featurespace, known for its AI-powered technology, for an undisclosed sum.
Founded in 2008 in Cambridge, Featurespace has developed machine learning-based fraud prevention systems and counts major financial institutions, such as HSBC and NatWest, among its clients. The company has raised approximately $100 million from investors, including the late technology entrepreneur Mike Lynch.
Visa states that this acquisition will bolster its existing fraud detection and risk-scoring solutions, enhancing the company’s ability to protect the payments ecosystem through advanced AI technology. The deal is expected to close in 2025, subject to regulatory approval and other customary conditions. Reports suggest the acquisition may be valued at around £700 million, as speculated by Sky News in August.
Antony Cahill, Visa’s global head of value-added services, highlights that Featurespace’s expertise in AI will enhance Visa’s product portfolio, allowing them to tackle clients’ most complex fraud challenges. This acquisition is seen as a strategic move to strengthen Visa’s position in the financial fraud prevention market.