Visa has signed a definitive agreement to acquire behavioural fraud intelligence provider BioCatch for US$2.4 billion in cash, expanding its fraud prevention and security capabilities.
The acquisition will bring BioCatch’s AI and machine learning-based technology into Visa’s existing cyber, fraud, risk and security solutions.
Visa said the deal will help financial institutions better protect customers against threats including account takeovers, scams, money mule activity and application fraud.
Monitoring user behaviour
BioCatch uses behavioural intelligence to analyse thousands of application, behavioural, device and network signals, including keystrokes, touch gestures and device handling.
Its technology helps distinguish legitimate users from fraudsters in real time by identifying patterns linked to suspicious activity.
The company currently protects 1.8 billion devices and 760 million users globally, serving more than 350 banking clients across 21 countries, including over 100 of the world’s largest banks.
Upstream fraud prevention
Visa said the acquisition will support efforts to prevent fraud earlier in the digital banking and payment journey, before threats reach the point of transaction.
The company noted that account takeovers and scams are becoming increasingly difficult to combat as artificial intelligence enables fraudsters to scale their attacks.
“Account takeovers and scams cost the global economy over US$1 trillion annually and AI is enabling these attacks at unprecedented scale,”
said Andrew Torre, President of Value-Added Services at Visa.
BioCatch Chief Executive Officer Gadi Mazor said behavioural intelligence can help financial institutions better understand customer intent and strengthen trust during digital banking interactions.
“Real-time insights into customer intent continue to grow increasingly essential for institutions to establish trust within digital banking sessions,”
Mazor said.
Visa has invested more than US$13 billion in technology and infrastructure over the past five years to strengthen payment security and reduce fraud risks.
The BioCatch acquisition builds on its broader efforts to provide AI-powered tools for detecting and preventing cyber and financial crime across activities ranging from account opening to transactions.
The transaction involves acquiring BioCatch from funds advised by Permira and other shareholders.
It remains subject to customary closing conditions, including regulatory approvals, and is expected to close by the end of Visa’s fiscal second quarter of 2027.
Featured image credit: Edited by Fintech News Switzerland, based on image by halalstock via Magnific
This article first appeared on Fintech News Singapore
