Visa is set to pay billions for a start-up with access to a network of America’s biggest fintech apps.
Visa will acquire Plaid, a start-up that allows users to share their financial information with apps and services like Acorns, Chime, and Venmo, for $5.3 billion.
Given that 75 per cent of the world’s internet-enabled consumers used a fintech application to move money in 2019 – and the fact that giants like Visa are increasingly having their business fundamentals challenged by up-and-comers like Afterpay – it’s probably a smart move.
“We are extremely excited about our acquisition of Plaid and how it enhances the growth trajectory of our business,” said Visa CEO Al Kelly.
“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.”
One in four people with a US bank account have used Plaid to connect to more than 2,600 fintech developers across 11,000 financial institutions.
“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,” Plaid CEO Zach Perret.
“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.”