Mastercard acquires US open banking company

Finicity’s shareholders have the potential for an earn-out of up to $160 million in additional funds

Mastercard

Mastercard acquires US open banking company. Source: shutterstock.com

Mastercard has announced the acquisition of open banking company Finicity for $825 million.

Finicity’s technology and teams are expected to strengthen Mastercard’s open banking platform. They would enable a wider choice of financial services, reinforcing the company’s partnerships with financial institutions and fintechs worldwide.

In fact, open banking gives people and businesses more control over their financial data. That’s about determining how third parties can access that data to provide new services or initiate payments on their behalf.

Open banking is a growing global trend and a strategically important space for us. With the addition of Finicity, we expect to not only advance our open banking strategy but enhance how we support and accelerate today’s digital economy across several markets. Finicity has a proven business, built on partnerships with thousands of banks and fintechs, similar to us. Finicity also shares our commitment to consumer-centric data practices, ensuring consumers have a say in how and where their information should be used. It’s through the use of next-generation open banking APIs and clear consumer approvals that this financial information can deliver streamlined loan and mortgage processes, rapid account-based payment initiation, and personal financial management solutions
Michael Miebach, president of Mastercard

We’ve reported that Revolut has introduced open banking to retail and business clients in Ireland through a partnership with financial API provider TrueLayer.

SEE ALSO: