Visa acquires AI fraud detection startup Featurespace for an estimated $935.06 million

Visa has announced plans to acquire Featurespace, an enterprise tech startup focused on AI-driven fraud and financial crime prevention. While the exact terms of the deal haven’t been revealed, SkyNews reported the acquisition could be worth around £700 million ($935 million).

This move is set to boost Visa’s capabilities in fraud detection and strengthen security across its payment network. Visa’s ongoing investment in cutting-edge technology is part of a broader effort to address new threats and provide enhanced protection to its users.

“A bid from Visa for the Cambridge-based fraudbuster could value Featurespace, which was set up in 2008. Estimates of its potential value varied this weekend, but one insider said it could be worth more than £700m, while another said it could ultimately be worth less than that,” Sky News reported.

As AI becomes a critical component of tech products and services, companies like Visa are positioning themselves to meet the growing demand for AI-driven solutions. Featurespace’s advanced fraud management tools, powered by AI, will help Visa’s clients detect and mitigate fraud in real time.

Since its inception at Cambridge University’s engineering department five years ago, Featurespace has pioneered algorithm-driven solutions to analyze transaction data and catch even the trickiest fraud attempts. Antony Cahill, Visa’s Global Head of Value-added Services, commented:

“Helping our clients stay ahead of evolving threats is a top priority. Featurespace’s strength in AI will expand our product offerings and equip us to solve some of the most difficult challenges our clients face. We’re excited to bring the Featurespace team onboard,” Visa said in a press release.

Together, Visa and Featurespace will empower clients to combat fraud in real time, using AI-powered tools to safeguard the payments ecosystem. This acquisition reinforces Visa’s long-standing commitment to security. Over the past five years, Visa has invested billions in technology aimed at reducing fraud and securing its network.

Founded in 2008 by Bill Fitzgerald and David Excell, Featurespace is based in Cambridge, UK, and has grown to a team of over 400 employees. The company operates across six global locations and serves major banking and payments clients, including HSBC, NatWest, and Worldpay.

In 2019, we reported on Featurespace’s $32.3 million funding round, which was aimed at supporting its international growth and product innovation. The round was led by Insight Venture Partners and MissionOG, alongside other investors like IP Group plc, Highland Europe, TTV Capital, Robert Sansom, and Invoke Capital.

Featurespace Team