Visa Inc. (NYSE: V) is to acquire Plaid, a San Francisco, CA-based network that allows people to securely connect their financial accounts to the apps they use to manage their financial lives, for $5.3 billion.
The deal is subject to regulatory approvals and other customary closing conditions.
The transaction represents both an entry into new businesses and complementary enhancements to Visa’s existing business. First, Plaid’s fintech-centric business opens new market opportunities for Visa both in the U.S. and internationally. Second, the combination of Visa and Plaid enhance payment capabilities and related value-added services to fintech developers. Finally, the acquisition will enable Visa to work closely with fintechs through all stages of their development and drive growth in Visa’s core business.
Founded in 2013 by Zach Perret and William Hockey, Plaid provides products that enable consumers to share their financial information with thousands of apps and services such as Acorns, Betterment, Chime, Transferwise and Venmo. Plaid connects with over 11,000 financial institutions across the U.S, Canada and Europe.