Global payments leader Visa has agreed to acquire Israeli cybersecurity company BioCatch for $2.4 billion in cash, strengthening its fraud prevention capabilities as financial institutions face a growing wave of artificial intelligence-powered cyber scams.
Under the agreement, Visa will purchase BioCatch from private equity firm Permira and other investors. The acquisition is expected to close during Visa's fiscal second quarter of 2027, subject to regulatory approvals.
The deal centers on BioCatch's behavioral biometrics technology, which uses real-time user behavior—including typing speed, touchscreen interactions, mouse movements and device handling—to distinguish legitimate users from fraudsters, bots and account takeover attempts.
Visa said the technology will help financial institutions detect suspicious activity before fraudulent transactions are completed, adding another layer of protection to digital payment systems.
The acquisition reflects the payments industry's increasing investment in cybersecurity as generative AI enables cybercriminals to launch more sophisticated phishing attacks, identity theft schemes and financial fraud.
According to Visa, scams and account takeover fraud now cost the global economy more than $1 trillion annually, making advanced fraud detection one of the financial sector's fastest-growing priorities.
BioCatch currently protects approximately 760 million users across around 350 banks and financial institutions worldwide.
Once integrated into Visa's global network, the technology will have access to a much larger payments ecosystem. Visa's infrastructure connects nearly 14,500 financial institutions and processes more than 329 billion transactions annually, representing over $17 trillion in payment volume.
Visa said the acquisition will further strengthen its Value-Added Services division, which provides fraud prevention, cybersecurity, risk management and data analytics solutions to banks, merchants and payment providers.
Company executives said expanding beyond traditional payment processing remains a key strategic priority as digital financial services continue to evolve.
In a statement, Visa said BioCatch's technology will help clients identify and stop fraudulent activity before it reaches the payment stage, improving protection for both consumers and financial institutions.
BioCatch also welcomed the acquisition, saying the partnership would enable the company to expand its fraud prevention capabilities globally.
The company noted that financial scams continue to increase each year as cybercriminals use increasingly advanced technologies, making stronger authentication and behavioral analysis essential to protecting users.
Industry analysts believe the acquisition highlights how cybersecurity and artificial intelligence are becoming central to the future of digital payments, with financial institutions investing heavily in technologies capable of detecting fraud in real time.
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