Visa Inc. (NYSE:V) recently announced the launch of three new AI-powered solutions aimed at enhancing payment security and minimizing fraud. These solutions, expected to be available in the first half of 2024, will be part of the Visa Protect portfolio, which offers a range of value-added services including issuing solutions, acceptance solutions, risk and identity solutions, open banking solutions, and advisory services.
One of the key solutions, Visa Deep Authorization, focuses on transaction risk scoring for card-not-present (CNP) payments. This solution, utilizing Visa’s expertise in AI, aims to address evolving digital fraud challenges without disrupting digital transactions.
Visa has also expanded its AI-powered fraud risk management tools, such as Visa Advanced Authorization and Visa Risk Manager, to support non-Visa card transactions. This expansion allows issuers to streamline fraud detection efforts, enhancing fraud defense mechanisms and reducing operational costs.
The third solution targets fraud prevention in instant payment processes like peer-to-peer digital wallets and account-to-account transfers. Leveraging advanced deep learning AI, this solution provides real-time risk scores, enabling financial institutions to identify and prevent fraudulent transactions before they occur.
These initiatives underscore Visa’s commitment to enhancing its risk and fraud solutions suite and strengthening its global value-added services portfolio, which currently includes approximately 200 products. By upgrading its offerings, Visa aims to attract new customers and increase data processing revenues, which grew by 14% year over year in the first quarter of fiscal 2024.
The demand for these solutions is expected to remain strong as businesses increasingly digitize their operations. While digitization offers convenience, it also brings new challenges, including sophisticated digital fraud. Visa’s new solutions address these challenges, helping organizations create a safer payment ecosystem.
Visa has invested significantly in enhancing its AI and fraud prevention capabilities, with $10 billion invested over the past five years. In 2023, Visa partnered with Expel, a leading security operations provider, to help global clients detect and mitigate cyber threats, ensuring secure money movement worldwide.
Visa’s stock has performed well, gaining 24.9% in the past year compared to the industry’s 24.4% growth. These new solutions are expected to further strengthen Visa’s position in the market and drive continued growth in the future.
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Author Stephanie Bédard-Châteauneuf 
