TEL AVIV — Visa agreed to acquire Tel Aviv-based behavioral biometrics firm BioCatch for $2.4 billion in cash on August 3, 2026. The acquisition is expected to close by the end of Visa's fiscal second quarter of 2027, subject to regulatory approvals.

The deal targets a surge in financial crime driven by artificial intelligence. Account takeovers and scams cost the global economy more than $1 trillion annually. Andrew Torre, President of Value-Added Services at Visa, said, "AI is enabling these attacks at unprecedented scale." He added that BioCatch will help clients stop fraud before it reaches the point of payment.

BioCatch provides behavioral biometrics technology that analyzes signals such as keystrokes, touch gestures, and device handling to distinguish legitimate users from fraudsters in real time. The company analyzes more than 3,000 anonymized data points to identify suspicious activity. As of July 2026, BioCatch analyzed 19 billion digital sessions per month, up from 12 billion in 2025. The firm protects 1.8 billion devices and 760 million users across more than 350 banking clients in 21 countries.

Gadi Mazor, CEO of BioCatch, said, "Real-time insights into customer intent continue to grow increasingly essential for institutions to establish trust within digital banking sessions." He noted that for more than a decade, his company has demonstrated behavior’s unique ability to distinguish the criminal from the legitimate. Mazor added that in the last couple of years, they have shown how real-time intelligence-sharing networks between customers can amplify the power of behavioral intelligence further still.

Visa is acquiring BioCatch from Permira and other investors. Permira acquired a majority stake in BioCatch in 2024 at a valuation of $1.3 billion. In 2024, Bain Capital and Maverick Ventures sold shares worth $750 million in BioCatch, giving Permira control of 57% of the company.

Under Permira's ownership since 2024, BioCatch's revenue and gross profit both roughly tripled. Permira’s investment was part of its Ascent strategy, which targets mid-market growth companies in sectors like financial services. The private equity firm advises funds with total committed capital of €80 billion and employs over 470 people in 15 offices across Europe, North America and Asia.

The purchase follows other strategic moves by Visa in the fraud detection sector. In 2024, Visa acquired Featurespace, a UK-based behavioral biometrics firm, for an undisclosed amount. This signaled a broader trend in acquiring fraud detection technologies.

Visa has invested more than $13 billion in technology and infrastructure to fight fraud over the past five years. Torre said, "This acquisition is part of our strategy to help clients prevent cyber threats upstream, building trust into every transaction."

Competitors are also active in the space. Mastercard acquired Recorded Future, a cybersecurity intelligence firm, for $2.65 billion in 2024. On August 3, 2026, Mastercard completed its acquisition of stablecoin infrastructure platform BVNK.

Citi was the first bank live on Mastercard's new virtual card network controls. Adam Frisch, an analyst at Evercore, said, "We think investors will welcome the news as there has been increasing discussion about the need for enhanced fraud solutions to protect payments in the AI age, with many flagging Mastercard's Recorded Future as the best-in-class tool for this."

BioCatch was founded in 2011 in Tel Aviv. Research titled BioCatch secures e-commerce with behavioural biometrics was published in 2014 in Biometric Technology Today. In 2025, BioCatch expanded into financial crime prevention with a product designed to proactively identify bank accounts used for fraud, including money mules. Mazor said, Together with Visa, we’re even better positioned to advance our mission of making the world a safer place to transact and protect consumers from financial crime.""

Visa's network connects nearly 14,500 financial institutions and processes more than 329 billion transactions worth over $17 trillion annually. The company's value-added services division grew revenue 34% in the last quarter. Visa's cross-border volume growth rate was 13% last quarter. Mastercard's cross-border volume growth rate was 12% last quarter, and its value-added services revenue jumped 20% in the same period.

Market metrics show shifting investor positions. Hedge fund ownership of Visa fell from 184 to 181 funds last quarter. Hedge fund ownership of Mastercard rose from 150 to 157 funds last quarter.

As of August 4, 2026, Visa trades at a forward P/E of 24.45. Mastercard trades at a forward P/E of 29.15 as of the same date. Short interest sits at 1.39% of Visa's float. Short interest sits at 1.04% of Mastercard's float.

Why It Matters

The acquisition integrates behavioral biometrics covering 1.8 billion devices into Visa's network, which processes over $17 trillion annually, to counter AI-driven fraud costing the global economy more than $1 trillion each year. This move aligns with a competitive pattern of payment giants purchasing cybersecurity firms, following Mastercard's 2024 acquisition of Recorded Future and Visa's purchase of Featurespace. By shifting fraud prevention upstream before transactions reach the point of payment, the deal aims to secure digital banking sessions across nearly 14,500 financial institutions.