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Visa’s Growing Services Business Infused with New AI-Powered Products

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Visa introduces three new AI-powered solutions to its Visa Protect suite, aiming to combat fraud across various payment channels. The company's commitment to security is evident with $40 billion blocked in fraudulent activity last year. The new products leverage AI and deep learning to enhance fraud prevention and network security.
Positive
  • Visa continues to innovate with three new AI-powered solutions in its Visa Protect suite
  • The company blocked $40 billion in fraudulent activity last year, showcasing its dedication to security
  • The new solutions utilize AI and deep learning to enhance fraud prevention and network security
Negative
  • None.

Visa's introduction of three new AI-powered solutions to its Visa Protect suite represents a strategic enhancement in the company's value-added services. The financial implications are twofold: potential revenue growth and cost savings. The expansion into network-agnostic fraud prevention services could open up new revenue streams by attracting non-Visa network clients seeking robust security solutions. Additionally, the use of advanced AI in fraud detection may lead to operational efficiencies, reducing the costs associated with fraudulent transactions. As Visa reported blocking $40 billion in fraudulent activity last year, the enhancement of these services could further improve their fraud prevention capabilities, potentially increasing the trust and reliability of Visa's network for both current and prospective clients.

The deployment of AI technologies, such as deep learning recurrent neural networks, in Visa's new fraud prevention solutions, is indicative of the evolving landscape of digital security. Visa's commitment to investing $10 billion over the past five years in technology showcases the industry's trend towards leveraging AI to combat increasingly sophisticated cyber threats. The real-time, account-to-account payment protection service is particularly significant, as it addresses the urgent need for security in the rapidly growing sector of P2P digital wallets and instant payment systems. By providing a risk score in real time, Visa aims to proactively block fraudulent transactions, which could set a new standard for security in digital finance and influence the cybersecurity strategies of other financial institutions and payment service providers.

Visa's expansion of its AI-powered risk and fraud prevention solutions is a response to the market demand for more secure digital payment experiences. With the rise of card not present (CNP) transactions and immediate payments, consumers and businesses alike require solutions that can mitigate fraud without compromising transaction speed or user experience. Visa's move to offer network-agnostic services also suggests an understanding of the need for interoperability in today's diverse payment ecosystem. By leveraging their extensive data and AI capabilities, Visa is positioning itself to capture a larger share of the market for payment security solutions, which could influence the competitive dynamics within the digital payments industry.

  • Three new AI-powered solutions are added to Visa Protect suite to help block fraud
  • Among the newest services: a cutting-edge immediate payment fraud solution and expanded capabilities to mitigate fraud, agnostic to payment network
  • Growing usage across global services portfolio – Visa’s largest 265 clients now use an average of 22 of Visa’s value-added services products1

SAN FRANCISCO--(BUSINESS WIRE)-- Today, Visa (NYSE:V), a leader in digital payments, announced continued expansion of its global value-added services business with the addition of three new AI-powered risk and fraud prevention solutions. The new products, part of the end-to-end Visa Protect suite, are designed to reduce fraud across immediate account-to-account and card not present (CNP) payments, as well as transactions both on and off Visa’s network.

Visa Protect is part of a broad suite of Visa value-added services that have grown to nearly 200 products, spanning five high-demand categories: Acceptance, Advisory, Issuing, Open Banking, and Risk and Identity. To help clients navigate a growing number of complexities, Visa has combined decades of expertise and significant investments in both AI and fraud prevention, with $10 billion over the last five years alone in technology and innovation, to help reduce fraud and increase network security.

“Digital payments go far beyond completing a sale – we are entering an era of modern commerce where winners move fast, AI is essential, experiences are flexible and security is native,” said Antony Cahill, Global Head of Value-Added Services, Visa. “Businesses are looking for partners that can enable their ambitions to compete and win and we’re proud to be the trusted partner helping a growing number of clients do exactly that in today’s highly competitive environment.”

Security and fraud prevention are fundamental to Visa. Last year, Visa helped block $40 billion in fraudulent activity, nearly double from the year prior2. Today’s announcement focuses on three Visa Protect solutions that are intended to address client needs and utilize the company’s deep expertise in AI:

  • Visa Deep Authorization (VDA): Developed to address challenges facing issuers as a result of increasingly sophisticated digital fraud, VDA is a new transaction risk scoring solution tailored to better manage CNP payments. Powered by a world-class deep learning recurrent neural network (RNN) model and petabytes of contextual data, VDA is designed to combat fraud without disrupting digital transaction experiences.
  • Expansion of Visa Advanced Authorization (VAA) and Visa Risk Manager (VRM) for non-Visa card payments: Visa’s extensive, AI-powered fraud risk management solutions are now network scheme agnostic, allowing issuers to simplify their fraud operations into a single fraud detection solution that help strengthen fraud protections while reducing costs.
  • Real-Time, Account-to-Account Payment Protection: Visa’s first fraud prevention solution built specifically for immediate payments, including P2P digital wallets, account to account transactions, and central banks’ instant payment systems. Powered by deep learning AI detection models, this new service provides a risk score in real time that helps financial institutions prevent fraud by automatically blocking bad transactions before they happen.

Each product will launch in the first half of 2024. Availability will vary by product and market.

“Real-time, digital payments are nearly ubiquitous, creating a need for security solutions that are transformative and adaptive to the real-world,” said James Mirfin, SVP, Global Head of Risk and Identity Solutions, Visa. “As digital fraud grows in volume and sophistication, Visa is keeping pace by bolstering our powerful suite of risk and fraud solutions through our unmatched technology innovation and AI expertise, and expanding their utility beyond the Visa network.”

To learn more about end-to-end security solutions from Visa, visit our Intelligent Security page and Visa.com for more information on Visa’s value-added services for businesses.

About Visa Inc.

Visa (NYSE: V) is a world leader in digital payments, facilitating transactions between consumers, merchants, financial institutions and government entities across more than 200 countries and territories. Our mission is to connect the world through the most innovative, convenient, reliable and secure payments network, enabling individuals, businesses and economies to thrive. We believe that economies that include everyone everywhere, uplift everyone everywhere and see access as foundational to the future of money movement. Learn more at Visa.com.

1 Visa 2023 Annual Report
2 Visa data from October 1, 2022 – September 30, 2023

Kryssa Guntrum

kguntrum@visa.com

Source: Visa Inc.

FAQ

What solutions has Visa added to its Visa Protect suite?

Visa has introduced three new AI-powered risk and fraud prevention solutions to its Visa Protect suite

How much fraudulent activity did Visa block last year?

Visa blocked $40 billion in fraudulent activity last year

What technology does Visa leverage in its new fraud prevention solutions?

Visa's new solutions utilize AI and deep learning technology to enhance fraud prevention and network security

When will the new products be launched?

Each product is set to launch in the first half of 2024, with availability varying by product and market

Visa Inc.

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Financial Transactions Processing, Reserve, and Clearinghouse Activities
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About V

Visa Inc. is an American multinational financial services corporation headquartered in San Francisco, California. It facilitates electronic funds transfers throughout the world, most commonly through Visa-branded credit cards, debit cards and prepaid cards. Visa is one of the worlds most valuable companies.