FinTech: Visa Snaps Up Fintech Network Plaid for $5.3 Billion

Plaid allows people to connect their finances to apps.

Fintech applications need to connect up with a user’s financial accounts to deliver true benefits of immediate updation and convenience. For example, a Venmo user can make and share payments with contacts, make purchases and transfer money to their bank. Plaid is the network that provides the linkage between Venmo and the user’s bank account. Now, Visa will pay $5.3 billion for Plaid.

Visa’s acquisition: The importance of being Plaid

It’s a dramatic statistic. Nearly 75% of the world’s internet-enabled consumers used a fintech application to initiate money movement in 2019. This compares with just 18% in 2015. Plaid played a dominant role in enabling these fintech apps to link up with the traditional banking system.

“Plaid is a leader in the fast-growing fintech world with best-in-class capabilities and talent,” said Al Kelly, CEO, and Chairman of Visa. “The acquisition, combined with our many fintech efforts already underway, will position Visa to deliver even more value for developers, financial institutions and consumers.”

Meanwhile, Visa will fund the acquisition from internal cash and borrowings if required.

“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,” said Zach Perret, CEO and co-founder of Plaid. “Together the two companies can support the rapid growth of digital financial services.”

Impact on Visa’s business

Plaid’s networking with fintechs across the globe opens up new market opportunities for Visa. Furthermore, fintech developers can now add enhanced payment capabilities and value-added services into apps that can run across both Plaid and Visa systems. The deal will also boost Visa’s interactions with developers and drive further growth in the company’s business.

Related Story: Fintechs Across The Asia Pacific Can Go Global Using The Visa-Marqeta Alliance

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Alt Insights

January 16, 2020

ESG: Lately-turned Tesla Bull Jim Cramer Adds Fink To The Mix

ESG: Lately-turned Tesla Bull Jim Cramer Adds Fink To The Mix
Shape

Latest Alternative Investment News

Emission-Free Friday: Here are the Latest Funds to Push for Carbon Neutral
January 17, 2020     ESG and Sustainability, Investments, News

Carbon emissions dominated the headlines this week. The European Commission has announced an ambitious plan to shift toward a green economy and make the EU carbon-neutral in the year ahead….

Kirkoswald Asset Management Will Turn New Investors Away in 2020
January 17, 2020     Hedge Funds, News

Kirkoswald Asset Management will stop accepting new investors when the fund hits nearly $2 billion. Reuters reports that the two-year-old fund will close itself to new investors at the end…

FinTech: Fundbox Hires Former Goldman Sachs Investment Banker as CFO
January 17, 2020     FinTech, Venture Capital

Fundbox, the fintech startup that finances SMEs, is planning a potential IPO. Fundbox has appointed Marten Abrahamsen as its CFO effective this January. Abrahamsen was previously a partner at The…

Hedge Funds: The Empire Strikes Back At HKD Short-Sellers and Doomsayers
January 17, 2020     Hedge Funds, News

Such is the power of Kyle Bass, the hedge fund manager who correctly predicted the crisis from US subprime mortgages in 2007. The Hong Kong Monetary Authority deemed it appropriate…