Visa announced that it is will purchase fintech startup Plaid for $5.3 billion. This reveals a great deal for the company as it would enhance it growth in the digital arena.
This comes after Visa bought cross border payments company, Earthport, though for much less amount.
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Plaid is a fintech firm set up in 2013. It develops financial services Application Programming Interfaces (APIs).
Technology developed by Plaid allows bank customers to connect their bank accounts to series of applications which allows customers to make online money transfer.
Plaid customers include Venmo, Acorns, Betterment, Transferwise, and Chime. Cryptocurrency companies such as Abra and Coinbase are not left out.
According to Alfred Kelly, the Chief Executive of Visa, added that visa is moving beyond the pace of money payments.
“We are increasingly trying to move from being strictly focused on payments to being focused on the movement of funds for any purpose around the world”.
“Plaid is bringing a new network and a new network capability in the form of connectivity that we at Visa do not have”, he added.
Vasant Prabhu, a key senior of Visa, Chief Financial Officer, added that fintech is growing remarkably.
“Fintechs are growing at many multiples of the rate of growth in Visa’s core C2B payments business”, he said.
“In addition, by integrating payments with Plaid, we can accelerate Visa’s network of networks money movement strategy, which is underpinned by the Visa Direct, Earthport and our B2B initiatives”, he added.