Visa is interested in moving on to the fintech space with the announcement that it is planning to take over financial technology company Plaid for $ 5.3 billion.
With the Plaid platform, users can connect their bank accounts to finance apps such as Venmo and Betterment to facilitate online payments and investments.
If the deal goes through, this means that Visa now has an important technology layer in the growing fintech space. Last year alone, an estimated 75 percent of internet users worldwide used a fintech app to move money.
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Although Plaid may not be as well-known as some of its customers, about one in four people with a US bank account has used the company’s platform to share data with and connect to a Visa financial app. Venmo is a good example of this, because when a user sets up an account with the service, Plaid technology enables them to link their bank account.
In a press release announcing its plans to take over Plaid, VISA CEO and Chairman AL Kelly explained how the transaction will enable the company to deliver even more value to its customers and financial institutions, saying:
“We are very enthusiastic about our acquisition of Plaid and how this improves the growth path of our company. Plaid is a leader in the fast-growing fintech world with the best capacities and talent. The acquisition, combined with our many ongoing fintech efforts, will enable Visa to deliver even more value for developers, financial institutions and consumers. “
According to Visa, the core focus of Plaid & apos; also open up new market opportunities on fintech, both in the US and internationally. Once the deal is closed, Plaid will continue to operate as an independent company.
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