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Visa Acquires AI Firm Featurespace to Enhance Fraud Prevention

By  |  September 26, 2024

Per Reuters, Visa has announced the acquisition of AI-focused company Featurespace, which specializes in developing technology to combat fraud and financial crime. The world’s largest payments processor revealed the deal on Thursday, although the terms of the agreement were not disclosed. The acquisition comes at a time when top technology companies are racing to incorporate artificial intelligence into their products and services, fueling a surge in demand for AI-based solutions and machine learning technology.

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    Visa stated that Featurespace’s AI-enabled tools will bolster its ability to help clients detect and manage fraud in real time, thus protecting its vast global payment network. While the financial details remain confidential, a recent report from Sky News suggested that the deal could be valued at around £700 million ($935 million), according to unnamed sources.

    Related: Justice Department Sues Visa for Allegedly Stifling Rivals and Inflating Fees

    Founded in 2008 and based in Cambridge, UK, Featurespace has grown into a global leader in fraud detection and risk management. The company employs over 400 staff members across six international offices and serves some of the world’s top financial institutions, including HSBC, NatWest, and Worldpay, per Reuters. By leveraging its advanced machine learning technology, Featurespace helps its clients proactively defend against evolving threats in the payments and banking sectors.

    Source: Reuters