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