Visa Buys Out Personal Finance Enabler In Billion-Dollar Deal

Marco Green
January 14, 2020

Visa (NYSE:V) is close to a deal to buy privately held fintech Plaid, the Wall Street Journal reports, citing people familiar with the matter.

Visa and rival Mastercard Inc had invested in Plaid in a US$250 million series C funding round in 2018 that reportedly valued the firm at $2.65 billion.

Plaid's technology lets people link their bank accounts to mobile apps such as Venmo, Acorns and Chime, with the San Francisco-based firm saying its systems have been used by one in four people with a USA bank account. For instance, when a Venmo user sets up an account, it's Plaid's technology that lets them link their bank account to their Venmo account.

Ripple CEO Brad Garlinghouse has just shared his take on Visa acquiring payment startup Plaid for $5.3 bln, claiming that 2020 will be the year of consolidation in fintech and crypto. The deal will also give Visa an opportunity to sell enhanced payment capabilities and related value-added services to fintech developers, the company said.

Visa and Plaid respectively used Lazard and Goldman Sachs as their financial advisors.

Other reports by Click Lancashire

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