THE Visa announced this Monday which has established a definitive agreement to acquire also American Plaid, a company that facilitates linking users' bank accounts with financial management apps. The purchase, expected to cost around $ 5.3 billion, is expected to take place within the next three to six months.
Plaid solutions enable consumers to share their banking information with thousands of apps and services such as Acorns, Betterment, Chime, Transferwise and Venmo. But how does the company operate in this area? For example, when a user sets up a Venmo account it is Plaid that allows the user to link their bank account to the Venmo account.
Asserting in a statement that Plaid has been a leader in establishing this type of service, Visa says that one in four people with a US bank account now uses the service to connect to over 2,600. financial developers at over 11,000 financial institutions.
Al Kelly, Visa's CEO and President, ensures that the company is "extremely excited about the acquisition of Plaid" and how it will improve the company's business growth trajectory, notably by "having the best resources and talents." in the sector ". This acquisition aims to provide better solutions not only for consumers but also for professionals in the field.
The purpose of the purchase is to benefit developers, financial institutions and consumers, Visa guarantees. The company now explains that this acquisition represents an entry into new international business and existing business improvements. On the other hand, this agreement will allow "more advanced payment features and services to financial developers" and work more closely with fintechs at all stages of their development.