The ECB awards Portuguese Feedzai a 237 million contract for the digital Euro

The ECB awards Portuguese Feedzai a 237 million contract for the digital Euro - Portugal Business News

Financial News Europe - The ECB just awarded Portuguese cybersecurity Unicorn Feedzai a contract worth around 237 million euros to prevent fraud for the digital Euro.

With the launch of the digital euro, the ECB has chosen Portuguese company Feedzai to provide a risk management and fraud prevention system, in a four-year contract that is worth around 237 million euros.

Feedzai, in collaboration with PwC, will provide an artificial intelligence model that evaluates digital euro transactions according to the risk of fraud, based on deviations from each customer's usual pattern of behavior, interactions, and history.

What is Feedzai and what is its valuation?

Feedzai is a Series D cybersecurity company based in Coimbra, Portugal, that has a valuation of over USD 1.5 billion, making it a Unicorn. Feedzai, that is headquartered in Portugal and was co-founded in 2011 by Nuno Sebastião, Pedro Bizarro, and Paulo Marques, achieved Unicorn status within ten years.

Feedzai technology will be managing the security of the Digital Euro, spearheading Europe’s digital payments revolution.

Feedzai currently processes more than $8 trillion in payments annually, protecting around one billion consumers worldwide by monitoring transactions in around 190 countries through clients such as Citigroup, Banco Santander, Standard Chartered Bank, Novobanco, and fintech SoFi.

What are the companies involved in the development of the digital euro?

While Portuguese company Feedzai will provide a risk management and fraud prevention system, in a four-year contract that is worth around 237 million euros, the other European companies involved in the development of the digital euro include Capgemini's German subsidiary, Sapient GmbH, equensWorldline, and Giesecke+Devrient.

When will the digital euro be launched?

The European Central Bank is still awaiting legislative approval for the digital euro which is expected to be launched in 2029.