Visa Agrees to Buy BioCatch for $2.4 Billion

Visa announced Monday that it will pay $2.4 billion in cash to acquire the Tel Aviv-based fraud detection startup BioCatch from London-based private equity firm Permira and other investors.

Visa expands its fraud prevention capabilities. The transaction focuses on BioCatch’s “behavioral biometrics” platform, which examines keystroke timing, touchscreen pressure, device handling patterns and similar signals to identify legitimate customers versus scammers or bots before any payment is processed.

The purchase strengthens Visa’s value-added services unit, which markets fraud prevention, cybersecurity and analytics tools to banks and has emerged as one of the payments company’s fastest-growing segments as it reduces reliance on traditional transaction fees.

The deal addresses surging AI-powered scams. Payments firms are accelerating efforts to harden defenses while generative AI lowers the cost, speed and sophistication of attacks. Visa estimates that scams and account takeovers cost the global economy more than $1 trillion annually.

BioCatch currently safeguards 760 million users at roughly 350 banks. Visa’s network reaches nearly 14,500 financial institutions and handles over 329 billion transactions a year valued at more than $17 trillion.

Integration and timeline details. Andrew Torre, Visa’s president of value-added services, said in a statement, "BioCatch will help our clients stop fraud before it reaches the point of payment." The deal is expected to close by the end of Visa’s fiscal second quarter in 2027, subject to regulatory approvals. Other financial terms were not disclosed.

In a blog post released with the announcement, BioCatch warned that fraud and scam losses, the volume of attempts, mule accounts and the number of victims keep rising each year around the world. The Israeli firm added that partnering with Visa will let it expand its reach against a backdrop in which the industry is losing ground in the battle against financial crime.