Visa will acquire cybersecurity firm BioCatch for $2.4 billion to strengthen AI-powered fraud detection as cyber scams increase, with the deal expected to close in 2027 pending regulatory approval.
Visa Inc. has announced plans to acquire Israeli cybersecurity company BioCatch for $2.4 billion, marking one of the payments giant's biggest investments in fraud prevention as financial institutions face an increasing wave of artificial intelligence driven scams.
The all cash transaction will see Visa acquire BioCatch from private equity firm Permira and other existing investors. The acquisition is expected to be completed during Visa's fiscal second quarter of 2027, pending regulatory approvals.
The acquisition gives Visa access to BioCatch's advanced behavioral biometrics technology, which analyzes how users interact with their devices rather than relying solely on passwords or security codes.
The platform monitors factors such as typing speed, touchscreen movements, mouse activity, and device handling patterns to determine whether a genuine customer or a fraudster is attempting to access an account.
By identifying suspicious behavior before a transaction is completed, banks can stop fraudulent payments before money leaves a customer's account.
Visa said the acquisition comes as financial institutions worldwide face increasingly sophisticated fraud fueled by artificial intelligence.
The company estimates that scams, identity theft, and account takeover attacks cost the global economy more than $1 trillion each year, with criminals using AI to make phishing attempts and online fraud more convincing than ever.
As cyber threats continue to evolve, financial companies are investing heavily in technologies that detect suspicious activity earlier in the payment process.
The acquisition also supports Visa's strategy of growing its Value-Added Services business, which provides cybersecurity, fraud prevention, risk management, and analytics solutions to banks and payment providers.
This division has become one of Visa's fastest-growing businesses as the company expands beyond its traditional payment processing operations.
Visa President of Value Added Services Andrew Torre said BioCatch's technology will help financial institutions detect and stop fraud before payments are authorized.
BioCatch currently works with approximately 350 financial institutions and protects around 760 million users worldwide.
Visa's global payment network, meanwhile, connects nearly 14,500 financial institutions, processing more than 329 billion transactions annually with payment volumes exceeding $17 trillion.
The combination is expected to significantly expand the reach of BioCatch's fraud detection technology.
In a statement following the announcement, BioCatch said joining Visa will enable the company to broaden its efforts against financial crime.
The company noted that fraud losses, scam attempts, and account takeover incidents continue to increase globally, making stronger fraud prevention technologies increasingly important for banks and payment providers.
As artificial intelligence enables criminals to launch more sophisticated cyberattacks, financial institutions are placing greater emphasis on real time fraud detection.
Visa's acquisition of BioCatch highlights the growing importance of cybersecurity within the payments industry and reflects a broader shift toward investing in technologies that protect customers before fraudulent transactions occur.
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