Visa is interested in moving further into the fintech space with his announcement that he plans to acquire fintech company Plaid for $5,3 billion.
The Plaid platform allows users to connect their bank accounts to finance apps such as Venmo and Improvements to facilitate online payments and investments.
If the deal goes through, it would mean that Visa now owns a key layer technology in the growing fintech space. Last year alone, an estimated 75 percent of online shoppers worldwide use fintech money transfer apps.
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While Plaid may not be as widely known as some of its customers, about one in four people with a US bank account use the company's platform to share data and connect to the Visa Finance app. Venmo is a great example of this because when a user creates an account with the service, Plaid technology is what allows them to link their bank accounts.
В press release announced its plans to acquire Plaid, Visas CEO and Chairman Al Kelly explained how the deal will enable the company to provide even more value to its customers and financial institutions, saying:
“We are very pleased with our acquisition of Plaid and how it increases the growth trajectory of our business. Plaid is a leader in the rapidly growing global fintech industry with best-in-class capabilities and talent. The acquisition, in conjunction with our many fintech initiatives, put the visa in place to deliver even greater value to developers, financial institutions and consumers.”
According to the payment system, Plaid's focus on fintech will also open up new market opportunities both in the US and internationally. Once the deal closes, Plaid will continue to function as an independent company.
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Via the ZDNet website