Credit card provider Visa has taken over fintech firm Plaid for $5.30 billion. Plaid, had built a network that permits utilizers to simply link their financial accounts to the applications they utilize to administer their financial life style.
The firm’s platform supposedly paves way for easy exchange of financial data with thousands of applications and services by permitting users to connect multiple accounts.
The announcement points out that 75% of the world’s consumers with internet connectivity have used some sort of fintech app for transferring funds.
Therefore, according to Visa Chairman and CEO Al Kelly, it has “become increasingly important to facilitate consumers’ ability to use fintech applications.”
“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.”
Plaid also supports crypto wallet Abra, while cryptocurrency trading platform provider Coinbase also utilizes the firm’s facilities to acquire client’s banking data. Visa trusts that the takeover will pave way for it to function more intimately with fintech companies.
Kelly elaborates that takeover of Plaid transforms Visa from linking buyers and sellers to bringing together shoppers with fintech facilities.
The takeover still needs to receive regulatory approval and confirm to other closing criteria. The acquisition will not have any effect on Visa’s earlier announced stock repurchase program or dividend guidelines. The takeover is anticipated to be completed in the forthcoming three to six months.
Visa has signaled a spirited enthusiasm in fintech industry advancements. In October, Kelly stated that the enterprise is still negotiating with Facebook about Libra, in spite of pressure on the venture from worldwide regulators.
In late September, Visa revealed its collaboration with the UK based Revolut, a digital banking app. The collaboration permitted Revolut to unveil its product in new judiciaries such as Brazil, Australia, Japan, Canada, Russia, New Zealand, the United States and Singapore.
