Global payments giant Visa has agreed to acquire Fintech firm Plaid for $5.3 billion, according to an official announcement.
Plaid’s products and network allows users to easily and securely connect their financial accounts to thousands of different apps and services, including Acorns, Betterment, Chime, Transferwise and Venmo, making their financial lives more convenient.
According to the announcement, it is estimated that 75% of the world’s internet-enabled consumers currently use at least one fintech app for moving funds, compared to just 18% five years ago, with Visa’s Chairman and CEO, Al Kelly, explaining:
“We are extremely excited about our acquisition of Plaid and how it enhances the growth trajectory of our business.
“Plaid is a leader in the fast growing fintech world with best-in-class capabilities and talent. The acquisition, combined with our many fintech efforts already underway, will position Visa to deliver even more value for developers, financial institutions and consumers.”
While CEO and Co-founder of Plaid, Zach Perret, added:
“Plaid’s mission is to make money easier for everyone, and we are excited for this opportunity to continue delivering on that promise at a global scale.”
“Visa is trusted by billions of consumers, businesses and financial institutions as a key part of the financial ecosystem and together Visa and Plaid can support the rapid growth of digital financial services.”
Popular cryptocurrency wallet Abra is also served by Plaid, and US-based cryptocurrency exchange Coinbase uses the firms services.
The acquisition is still subject to regulatory and customary closing conditions, but is expected to be complete within the next three to six months.
Visa is increasingly investing in the rapidly growing fintech sector. In September 2019 the firm partnered with UK-based digital banking app Revolut, enabling it to offers services in new jurisdictions including Australia, Brazil, Canada, Japan, New Zealand, Russia, Singapore and the United States (read more).