ECB Chooses AI Startup Feedzai to Combat Fraud in Upcoming Digital Euro

The European Central Bank (ECB) has selected Portuguese artificial intelligence firm Feedzai to develop fraud-prevention systems for its planned digital euro, a project intended to strengthen Europe’s financial independence from U.S. payment networks and dollar-backed stablecoins.

The contract—valued at up to €237.3 million ($278.7 million)—was announced Thursday as part of a broader package of agreements advancing the digital euro initiative. Under the four-year deal, which could extend up to 15 years, Feedzai and its subcontractor PwC will create an AI-powered fraud scoring system capable of analyzing transactions for suspicious patterns based on user behavior, history, and interactions.

This technology will assist payment service providers in determining whether to approve or flag digital euro transactions—essentially, transfers between central bank–backed electronic wallets.

The ECB also awarded four additional contracts, ranging from €27.6 million to €220.7 million, to firms including Capgemini, which will support different technological and operational aspects of the digital currency ecosystem. Under these framework agreements, the ECB will only pay contractors once project implementation begins.

While the central bank continues to await legislative approval for the digital euro, officials describe it as a strategic response to Visa and Mastercard’s dominance in European payments and the rising influence of U.S.-linked stablecoins promoted under former President Donald Trump. If approved by mid-2026, the digital euro could be launched as early as 2029.

Feedzai, headquartered in Portugal, already monitors more than $8 trillion in global transactions annually, serving clients such as Novobanco and Wio Bank in Abu Dhabi. On the same day as the ECB announcement, Feedzai disclosed an additional $75 million in funding from Lince Capital, Iberis Capital, and Explorer Investments, signaling strong investor confidence in its role within Europe’s financial digitization push.

The partnership marks a major milestone in the ECB’s effort to balance innovation with financial security, ensuring that the future digital euro remains as safe as cash—but smarter.