The European Central Bank has selected Portugal-based Feedzai as its top-ranked provider for centralized fraud detection and risk scoring in the proposed digital euro. The framework agreement, valued at up to €237.3 million over four years, positions Feedzai at the core of transaction-level risk evaluation for peer-to-peer and merchant payments if the central bank digital currency moves into full deployment.
The appointment was announced on October 2. While the agreement does not guarantee spending until later phases, the ECB has identified Feedzai as its first-ranked tenderer for the fraud and risk module, an unusually explicit indication of preference in a still-conditional project.
Alongside the announcement, Feedzai disclosed a $75 million funding round that places its valuation at approximately $2 billion. The company said the investment will allow it to scale its technology to meet European Union-level transaction volumes. PwC has been named as a strategic partner for implementation.
The ECB’s decision adds to a series of high-profile developments for Feedzai. Earlier this year, the company opened a New York innovation hub as part of its expansion into the United States. It also partnered with Mastercard on artificial intelligence-driven scam detection and biometric security measures, further consolidating its reputation as a global provider of fraud prevention tools. Feedzai Opens New York Innovation Hub and Mastercard and Feedzai Partner to Combat AI-Driven Fraud with Enhanced Biometric Security.
The framework with the ECB represents the most prominent milestone yet for Feedzai, which was founded in 2009 and has steadily expanded its technology portfolio to cover real-time fraud analytics, anti-money laundering, and financial crime prevention for banks and fintechs worldwide.
Sources: European Central Bank, Feedzai
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By Cass Kennedy
