Visa announced the $5.3 billion acquisition

Visa and Plaid collaboration is expected to benefit developers, financial institutions and consumers

Plaid

Visa announced the $5.3 billion acquisition. Source: shutterstock.com

Visa announced the acquisition of Plaid network that helps people to securely connect their financial accounts to the apps they use to manage their finances.

Thanks to Plaid’s products, consumers are able to share their financial data with such apps and services as Acorns, Betterment, Chime, Transferwise and Venmo. For instance, after users set up a Venmo account, Plaid allows users to link their bank account to their Venmo account.

Approximately 75% of consumers worldwide used a fintech application to initiate money movement in 2019, compared to 18% in 2015. Nowadays, 1 out of 4 people with a US bank account has used Plaid. This way, people get connected to more than 2,600 fintech developers across more than 11,000 financial institutions.

Plaid’s mission is to make money easier for everyone, and we are excited for this opportunity to continue delivering on that promise at 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
Zach Perret, CEO and co-founder of Plaid

Due to Plaid’s fintech-centric business, Visa gets access to more market opportunities both in the US and internationally. Along with that, fintech developers receive enhanced payment capabilities and related value-added services. Visa believes the acquisition will enable better networking with fintechs, driving growth in Visa’s core business.

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