Visa beefs up cybersecurity offerings with $2.4 billion B…

Visa has announced its acquisition of fraud intelligence provider BioCatch for $2.4 billion in cash. This move aims to enhance Visa's cybersecurity capabilities amid increasing fraud threats that cost the global economy over $1 trillion annually. BioCatch specializes in real-time fraud detection by analyzing user behavior, serving over 350 banking clients worldwide. The acquisition reflects a trend among major card companies to bolster fraud prevention through acquisitions, with Visa having invested over $13 billion in technology for this purpose over the last five years. The deal is expected to close by the end of Visa's fiscal second quarter of 2027.

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A Visa credit card is seen on a computer keyboard in this picture illustration taken September 6, 2017. REUTERS/Philippe Wojazer/Illustration/File Photo Purchase Licensing Rights, opens new tab

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Aug 3 (Reuters) - Visa (V.N), opens new tab said on Monday it would buy fraud intelligence provider BioCatch for $2.4 billion in cash from investment firm Permira and other ‌investors, marking the card giant's latest effort to beef up its cybersecurity offerings.

The deal would help the world's largest payment processor further bolster its existing cyber, fraud, risk and security offerings and enable it to help clients better protect themselves in ⁠an increasingly complex threat environment, Visa said.

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"Account takeovers and scams cost the global economy over $1 trillion annually and AI is enabling these attacks at unprecedented scale. BioCatch will help our clients stop fraud before it reaches the point of payment," said Andrew Torre, president of value-added services at Visa.

Founded in 2011, BioCatch helps detect fraud and distinguish legitimate users from fraudsters in real time by analyzing ‌signals ⁠such as keystrokes, touch gestures and device handling.

The firm serves more than 350 banking clients in 21 countries and offers protection to 1.8 billion devices and 760 million users around the world.

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Card giants have increasingly turned ⁠to acquisitions to bolster their fraud prevention offerings in recent years.

Mastercard (MA.N), opens new tab finalized a $2.65 billion acquisition of threat intelligence company Recorded Future in 2024, while Visa bought payments ⁠protection firm Featurespace the same year.

Over the last five years, Visa has invested more than $13 billion in technology and infrastructure to ⁠tackle fraudsters.

The BioCatch deal is expected to close by the end of Visa's fiscal second quarter of 2027.

Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Joyjeet Das and Shinjini Ganguli

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Visa beefs up cybersecurity offerings with $2.4 billion BioCatch deal

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