Published: Thu, January 16, 2020
Markets | By Otis Pena

Visa to buy fintech provider Plaid in $5.3B deal

Visa to buy fintech provider Plaid in $5.3B deal

Visa, a financial services corporation, is reportedly acquiring Plaid, a start-up company based in San Francisco, in a deal worth $5.3 Bn. The transaction is expected to close in the next three to six months. It is a long-term play that would position Visa as a leading company in the next decade and help Plaid scale its products and increase its global footprint.

Credit card provider Visa has taken over fintech firm Plaid for $5.30 billion.

"We are extremely excited about our acquisition of Plaid and how it enhances the growth trajectory of our business", said Al Kelly, CEO of Visa. For example, the startup's APIs give Venmo users the ability to add their bank accounts to the platform.

Effectively, the brand is using its legacy connections to make sure the FinTech revolution proceeds apace.

"We believe Visa's acquisition of Plaid is an important development in giving consumers more security and control over how their financial data is used". After the deal, Visa is looking forward to accelerating revenue growth and new business opportunities. PayPal was also positive, saying that the coming together of Plaid and Visa would enable it to enhance its own products.

Love Island twins university: Jessica Gale goes to UCL!
Callum explains to Eve how to avoid Shaughna: "I'm so exhausted that I will probably end up saying the wrong thing". Eve said: "Honestly Jess, sometimes you baffle me". "The dates with me meant he'd been cheating the whole time".


According to CNBC, Plaid's API software allows startups to connect to users' bank accounts.

Visa, alongside rival card network Mastercard, joined a $250 million financing round in Plaid in September a year ago, that gave the company a $2.65 billion valuation. "Index and Kleiner led that round, valuing Plaid at $2.65 billion, or 50% of its final sale price (we doubt that that ratio is a coincidence)", Alex Wilhelm and Ron Miller write for TechCrunch.

At the same time, many FinTech apps, which are customers for both Visa and Plaid, have come up with louder appraisal for this acquisition. Here's a slide from Visa's presentation summarising the thinking behind the move. It links to over 11,000 financial institutions across the United States, Canada, and Europe.

Last year, Plaid doubled its number of customers to reach 2,600, and it expanded outside the U.S.to the U.K, Spain, France, and Ireland.

Plaid co-founder Zach Perret will stay on to run the company.

Like this: