Visa to acquire US fintech startup Plaid in $5.3 Bn deal

Visa, in an announcement, agreed to purchase the Plaid, a startup that helps to simplify and secure the process of connecting bank accounts to various other financial technology apps.

As a part of the deal, Visa will pay a total of around $5.3 billion to buy Plaid.

In the eight years of journey, Plaid has grown beyond some of the great expectations with a huge amount of investments and client base as well. In the year 2018, its valuation has reached $2.65 billion.

Plaid products can be used for thousands of apps, which include major players such as Square Cash, Robinhood, Coinbase, Venmo, Chime, Acorns.

Plaid partners with Crypto Wallet Abra. With Plaid integration, thousands of banks are easily compatible with the Abra wallet in the US.

According to the announcement, the collaboration of the Plaid with some of the largest financial technology apps in the US is one of the significant reasons for Visa acquisitions.

This deal helps Visa to get a large number of the customer base.

Executive Opinion

CEO and chairman of Visa, Al Kelly, said, "We are extremely excited about our acquisition of Plaid and how it enhances the growth trajectory of our business. Plaid is a leader in the fast-growing fin-tech world with best-in-class capabilities and talent. The acquisition, combined with our many fintech efforts already underway, will position Visa to deliver even more value for developers, financial institutions, and consumers."

CEO and co-founder of Plaid, Zach Perret, said, "Plaid’s mission is to make money easier for everyone, and we are excited for this opportunity to continue delivering on that promise on a global scale. Visa is trusted by billions of consumers, businesses, and financial institutions as a key part of the financial ecosystem, and together Visa and Plaid can support the rapid growth of digital financial services."

Visa's Plaid acquisition

In the year 2019, Plaid expanded its services to France, UK, Spain, and Ireland. With dominance at the global level, Visa can easily expand the Plaid across the globe.

As Visa closes its deal of acquisition, it is even expected to offer unparalleled benefits to developers, consumers, and financial institutions at a global level.

The acquisition will close in the coming six months, and Visa is paying for the purchase with $4.9 billion in cash and $400 million in stock, notes the announcement.