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How Will Featurespace Acquisition Enhance Visa's Fraud Capabilities?
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Visa Inc. (V - Free Report) recently inked a deal to acquire Featurespace, an AI-driven payments protection firm. Featurespace has made waves in the payments industry with its advanced algorithmic solutions capable of analyzing transaction data and identifying even the most elusive forms of fraud. This acquisition would enhance Visa’s risk-scoring and fraud-detection solutions for clients globally.
This move bodes well for Visa as it will be able to better cater to its client’s complex challenges, leveraging Featurespace’s strong AI foundation. The evolving landscape and more sophisticated types of payment fraud have made fraud prevention inevitable in today's time. In September 2024, V’s peer, Mastercard Incorporated (MA - Free Report) , agreed to acquire Recorded Future to enhance its cybersecurity capabilities.
Enhanced AI-fueled fraud prevention tools will help Visa’s clients save money on financial losses related to fraudulent transactions. This would help with client retention and even attract new clients. In the past five years, Visa invested billions of dollars in technology, also including investments to enhance fraud prevention capabilities.
The acquisition of Featurespace further diversifies Visa’s value-added service offerings, beyond merchant and processing solutions. Investments on this front are a time-opportune move as value-added service revenues have been growing more than 20% organically. It also accounted for 25% of fiscal third-quarter net revenues.
The acquisition is expected to close by fiscal 2025, subject to closing conditions and regulatory approvals. Financial terms of the deal were not disclosed. Moves like this are expected to aid Visa in reinforcing its position as a leader in the payments network space.
Visa's Price Performance
Shares of Visa have gained 18.9% in the past year compared with the industry’s 23.4% growth.
The Zacks Consensus Estimate for Fidelity National’s current-year earnings indicates a 50.5% year-over-year jump. FIS beat earnings estimates in two of the trailing four quarters and missed twice. The consensus estimate for current-year revenues is pegged at $10.2 billion.
The Zacks Consensus Estimate for Paysign’s current-year bottom line indicates 75% year-over-year growth. The consensus estimate for PAYS’ current-year top line is pegged at $58 million, indicating 22.6% year-over-year growth.
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How Will Featurespace Acquisition Enhance Visa's Fraud Capabilities?
Visa Inc. (V - Free Report) recently inked a deal to acquire Featurespace, an AI-driven payments protection firm. Featurespace has made waves in the payments industry with its advanced algorithmic solutions capable of analyzing transaction data and identifying even the most elusive forms of fraud. This acquisition would enhance Visa’s risk-scoring and fraud-detection solutions for clients globally.
This move bodes well for Visa as it will be able to better cater to its client’s complex challenges, leveraging Featurespace’s strong AI foundation. The evolving landscape and more sophisticated types of payment fraud have made fraud prevention inevitable in today's time. In September 2024, V’s peer, Mastercard Incorporated (MA - Free Report) , agreed to acquire Recorded Future to enhance its cybersecurity capabilities.
Enhanced AI-fueled fraud prevention tools will help Visa’s clients save money on financial losses related to fraudulent transactions. This would help with client retention and even attract new clients. In the past five years, Visa invested billions of dollars in technology, also including investments to enhance fraud prevention capabilities.
The acquisition of Featurespace further diversifies Visa’s value-added service offerings, beyond merchant and processing solutions. Investments on this front are a time-opportune move as value-added service revenues have been growing more than 20% organically. It also accounted for 25% of fiscal third-quarter net revenues.
The acquisition is expected to close by fiscal 2025, subject to closing conditions and regulatory approvals. Financial terms of the deal were not disclosed. Moves like this are expected to aid Visa in reinforcing its position as a leader in the payments network space.
Visa's Price Performance
Shares of Visa have gained 18.9% in the past year compared with the industry’s 23.4% growth.
Image Source: Zacks Investment Research
V’s Zacks Rank & Other Key Picks
Visa currently carries a Zacks Rank #2 (Buy).
Investors can look at some other top-ranked stocks from the broader Business Services space, like Fidelity National Information Services, Inc. (FIS - Free Report) and Paysign, Inc. (PAYS - Free Report) . Fidelity National sports a Zacks Rank #1 (Strong Buy), while Paysign carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Fidelity National’s current-year earnings indicates a 50.5% year-over-year jump. FIS beat earnings estimates in two of the trailing four quarters and missed twice. The consensus estimate for current-year revenues is pegged at $10.2 billion.
The Zacks Consensus Estimate for Paysign’s current-year bottom line indicates 75% year-over-year growth. The consensus estimate for PAYS’ current-year top line is pegged at $58 million, indicating 22.6% year-over-year growth.