Feedzai, a Portuguese AI startup, has been awarded a framework contract worth up to €237.3 million. The deal covers fraud prevention technology for the European Central Bank’s planned digital euro. The four-year agreement, with an initial value of €79.1 million, assigns Feedzai and subcontractor PwC to design and operate AI-driven systems that evaluate payments for suspicious behavior. This makes Feedzai one of the key vendors shaping the security layer of Europe’s central bank digital currency project.
The agreement sits alongside four additional digital euro contracts awarded on the same day, with values ranging from €27.6 million to €220.7 million. French IT firm Capgemini secured one of these deals. The ECB is distributing roles across multiple providers. Feedzai, registered in Coimbra, Portugal, processes $8 trillion in annual transactions for clients including Novobanco and Abu Dhabi’s Wio Bank, placing it in a strong position to handle large-scale fraud analysis.
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Fraud detection framework
Under the terms of the contract, Feedzai’s platform will assign fraud risk scores to digital euro transactions. The AI model will compare activity against each user’s historical behavior and interaction patterns, helping service providers decide whether to authorize or block payments. This mechanism will operate in real time to secure transfers between central bank-backed digital wallets.
Partner roles
PwC will provide technical and compliance support as Feedzai’s subcontractor, ensuring integration with ECB standards. Capgemini’s separate award covers a different element of the project, highlighting the ECB’s layered approach to development by contracting multiple vendors to prevent over-reliance on a single supplier.
Feedzai funding scale
The contract structure allows for flexibility. The ECB will not release funding until legislative approval for the digital euro is granted, but the framework authorizes a maximum of €237.3 million. Board member Piero Cipollone confirmed no payments would be made until the launch phase begins.
Market context
The ECB expects legislative clearance by mid-2026, with full rollout of the digital euro targeted for 2029. The initiative responds to U.S. card payment dominance. It also addresses the rise of dollar-pegged stablecoins. By investing in AI-led fraud prevention from the outset, the ECB is preparing to compete globally in digital payments while maintaining regional financial autonomy.
Strategic significance
The feedzai ai contract illustrates how central banks are embedding advanced risk detection into currency design. For startups, the deal shows that regulators are now treating AI not as an experimental layer but as a core requirement for financial infrastructure. With funding scale matching enterprise-grade technology budgets, the contract provides a roadmap for fintech founders aiming to align their products with government-backed digital payment initiatives. Feedzai’s role could accelerate commercial adoption of AI-first fraud detection across banks and fintechs. It may push the broader market toward standardized AI scoring systems that handle trillion-euro transaction volumes.
Reference
Reuters. (2025, October 2). ECB picks AI startup to prevent digital euro frauds. Reuters. https://www.reuters.com/business/finance/ecb-picks-ai-startup-prevent-digital-euro-frauds-2025-10-02/
