The European Central Bank (ECB) has chosen Portugal-based startup Feedzai to implement fraud detection and prevention for its digital euro initiative.
Feedzai’s selection is part of five tenders awarded by the ECB in preparation for the digital euro’s upcoming launch. This central bank digital currency (CBDC) project began in 2021, and the awarding of these tenders marks the start of the project’s second phase, according to the ECB.
This phase focuses on establishing a framework agreement with vendors for risk and fraud management, valued between €79.1 million and €273 million. Feedzai will collaborate with subcontractor PwC to ensure compliance with the EU’s data protection, security, and privacy standards.
Feedzai’s platform provides a fraud risk score for every transaction, enabling payment service providers to analyze this data before approving payments.
Nuno Sebastiao, CEO and co-founder of Feedzai, expressed that their selection as the top tenderer for the digital euro is both an honor and a significant responsibility. He emphasized the importance of artificial intelligence in adapting to evolving fraud tactics to maintain trust in every digital euro transaction.
Another vendor selected by the ECB is Germany-based Giesecke+Devrient, which will partner with Nexi and Capgemini to develop an offline solution for the digital euro.