Payment Giant Visa Acquires Plaid
A press release has revealed the acquisition of Plaid by Visa. Visa paid $5.3 billion to acquire the technology company, says the press release published on January 13.
It was revealed that Plaid came up with a network allowing easy connection of users’ financial accounts to the apps they utilize in managing their finances. Plaid’s products permit users to share financial information with numerous apps and services.
The services of Plaid are used by Coinbase to get banking information of customers. The crypto wallet known as Abra also uses services from Plaid.
According to the press release, 75 percent of internet consumers worldwide utilized a fintech app to move funds. Hence, this makes it necessary to promote the ability of consumers to utilize fintech apps.
Visa anticipates the possibility of working more closely with financial tech companies through the acquisition. The acquisition will help Visa move from connecting buyers and sellers to connecting consumers with fintech services.
There are regulatory and customary requirements for the acquisition to be met and it will not have an effect on previous announcement of Visa regarding its stock buyback program or dividend policy. The deal is expected to close in the next three to six months.
Visa is actively interested in innovations within the fintech sector. Three months ago, Visa said it was still in discussions with Facebook regarding Libra, despite intense regulatory concerns worldwide.
Four months ago, Visa announced its partnership with the UK-based digital banking app Revolut, thereby allowing Revolut to introduce its product in new jurisdictions that include eight countries.
Featured image courtesy of Shutterstock. Source: Cryptopress.