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The European Central Bank has named the first-ranked providers for key components of its planned digital euro, including a central fraud detection and prevention mechanism led by Portugal-based Feedzai, as the project continues through its preparation phase.
Publishing the results of its procurement on 2 October, the ECB said framework agreements have been signed for five areas: alias lookup, risk and fraud management, app and SDK development, an offline solution, and secure exchange of payment information. Service requests will initially go to the first-ranked provider, with the second-ranked approached only if required. The ECB stressed that a final decision to issue the digital euro would only follow adoption of the Digital Euro Regulation.
Under the risk and fraud management agreement, Feedzai—working with subcontractor PwC—will provide an AI model to score transactions for fraud risk, drawing on deviations from typical customer behaviour, interactions and history. The four-year framework, with an option to extend up to 15 years, has an estimated value of €79.1 million and a cap at €237.3 million, according to Reuters.
Feedzai described its role as delivering a “state-of-the-art central fraud detection and prevention mechanism” that complements payment service providers’ controls with insights from an infrastructure-level view. “Being selected as the first-ranked tenderer in the framework agreement to secure the digital euro is both an honour and a responsibility,” said Nuno Sebastião, Feedzai’s chief executive officer. “Our role is to provide the intelligence that keeps even the most sophisticated fraud out, ensuring trust in every digital euro transaction from day one”.
PwC executives framed the work as foundational for cross-border trust. “This is one of the most consequential digital infrastructure projects in Europe’s history — a foundation for trust in the digital age,” said Liviu Chirita, PwC’s global financial crime technology leader, and Dominic Schauerte, Germany financial crime technology leader. “Together with Feedzai and the European Central Bank, we are building the safeguards that will protect millions of people and businesses across borders”.
The ECB’s broader selection includes Sapient GmbH & Tremend Software Consulting and equensWorldline for alias lookup; Almaviva and Fabrick, and Sapient & Tremend for the app and SDK; Giesecke+Devrient for the offline solution (with a second provider to be announced); and Senacor FCS and equensWorldline for secure exchange of payment information.
Framework agreements do not involve payment at this stage and include safeguards to adjust scope in line with legislation. The central bank said it hopes to receive legislative approval around the middle of next year, with a possible launch in 2029, Reuters reported.
