Visa to Buy Fraud Defense Platform BioCatch in $2.4 Billion Deal

Originally posted in The Wall Street Journal. Blumberg Capital led BioCatch’s Series A round and participated in follow on rounds until exit. 

Key Takeaways

• Visa is acquiring BioCatch for $2.4 billion. The acquisition expands Visa’s AI-powered fraud prevention capabilities and reflects continued investment in payment security.
• BioCatch specializes in behavioral biometrics. Its platform uses artificial intelligence to distinguish legitimate users from attackers in real time across billions of devices.
• AI is becoming central to fraud prevention. Visa continues to invest heavily in AI-driven security technologies to identify vulnerabilities and stop fraud before payments occur.
• The deal reflects broader demand for AI security solutions. As digital payments grow, behavioral analytics and AI-powered fraud detection are becoming increasingly important across financial services.

BioCatch uses artificial intelligence to detect fraud and distinguish legitimate users from attackers.

Visa is acquiring BioCatch, a fraud-reduction platform, for $2.4 billion in cash. 

Visa is buying the Israeli company from funds advised by Permira, as well as other shareholders, the company said Monday. 

BioCatch uses artificial intelligence to detect fraud and distinguish legitimate users from attackers in real time. The company protects 1.8 billion devices and 760 million users globally. 

At the end of 2025, BioCatch exceeded $185 million in annual recurring revenue. 

Permira first invested in BioCatch in April 2023 and took a majority stake the following year. In May 2024, Permira said its stake acquisition gave BioCatch an enterprise valuation of $1.3 billion. 

Visa has been increasing its use of AI to fight fraud through its Visa Vulnerability Agentic Harness platform, a tool designed to help clients identify and fix vulnerabilities to fraud. Visa has spent $13 billion in fraud technology and infrastructure over the past five years. 

“BioCatch will help our clients stop fraud before it reaches the point of payment,” said Andrew Torre, Visa’s president of value-added services. 

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