Visa has acquired fintech firm, Plaid, at a cost of $5.3 billion, a move that will enable the firm take advantage of Plaid’s technology, thus making huge strides in the financial technology space.
Plaid’s technology connects applications with users’ bank accounts, thereby enabling customer to use these apps and services to help plan their spending, increase their savings and monitor their investments. This, therefore, will be a huge step in Visa’s movement away from traditional cards.
The acquisition, combined with our many fintech efforts already underway, will position Visa to deliver even more value for developers, financial institutions and consumers.Visa Chairman and CEO, Al Kelly
Reuters reports that Visa expects the deal to close in the next three to six months. The deal will improve the company’s adjusted earnings per share at the end of the third year.
Plaid is a fin-tech company that connects applications with users’ bank accounts. Plaid has raised a total of $310 million from investors including Spark Capital, Google Ventures, New Enterprise Associates, Goldman Sachs, American Express, and Citibank. Its last funding was a $250 million Series C round in December 2018 that put the start-up at a $2.65 billion valuation.