Visa acquired Featurespace, a firm using artificial intelligence (AI) to enhance payment protection. This deal aims to
boost the payment giant’s fraud detection capability and help it tackle
security threats in the digital asset space.

Visa Strengthens Fraud Detection

According to the firm’s official statement,
Featurespace’s algorithmic-based solutions, which analyze transaction data to
detect fraud, will integrate into Visa’s global network. This will reportedly enable the firm to offer clients a defense against financial crime.

Commenting about the acquisition, Dave Excell, the
Founder of Featurespace, said: “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.”

Featurespace uses AI technology to identify patterns
of fraud across various transaction types. Since its inception at Cambridge
University, the company has developed innovative methods to highlight elusive
fraudulent activities.

Real-time Fraud Detection

This merger promises to provide real-time fraud
detection solutions that can help financial institutions and merchants combat
growing cyber threats.

The partnership between Visa and Featurespace promises
to substantially impact the payments industry by preventing fraud and financial crime on a larger scale. It is expected to close in fiscal year 2025 and is subject to regulatory approval and other customary closing conditions.

Meanwhile, Visa and Revolut collaborated last year to
offer instant card transfers for the business customers of the former using the
Visa Direct system. This partnership aims to ease global payment processes. According to the firms, the new collaboration is an
important step in business payments. Through the integration of Visa Direct on
Revolut’s platform, companies can reportedly transfer funds to over 78
countries in less than 30 minutes.

Notably, the service supports more than 50
currencies, enabling businesses to operate globally. Additionally, it simplifies the payment process by
requiring only a card number to complete transactions, promising faster
payments to Revolut’s business users.

This article was written by Jared Kirui at www.financemagnates.com.