Visa to acquire BioCatch for $2.4 billion to enhance fraud detection

Payment giant Visa announced it will acquire Israeli artificial intelligence fraud prevention company BioCatch for $2.4 billion in cash. The acquisition is intended to enhance Visa's ability to detect risks such as account takeover, financial fraud, bot accounts, and synthetic identity fraud, leveraging BioCatch's behavioral analysis and device intelligence technology.

The transaction is subject to regulatory approvals and is expected to close by the end of Visa's second fiscal quarter of 2027. This acquisition will allow Visa to extend its fraud prevention capabilities beyond payment processing to cover account opening, login, and other account activities, identifying potential risks before funds enter the Visa payment network.

BioCatch, founded in 2011, utilizes AI and machine learning to analyze user behavior data, device information, and environmental factors during online banking sessions. The company claims to analyze approximately 19 billion user interactions monthly across 760 million users and 1.8 billion devices in 21 countries, serving over 350 financial institutions, including more than 100 large banks.

Visa has been actively investing in security and fraud prevention technologies. In 2024, Visa acquired AI fraud detection firm Featurespace. Competitor Mastercard also acquired threat intelligence company Recorded Future for $2.65 billion in 2024. Over the past five years, Visa has invested more than $13 billion in payment security technology and infrastructure.