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Mastercard to acquire Finicity to advance Open Banking strategy

Wednesday 24 June 2020 09:08 CET | News

Mastercard has announced it has entered into an agreement to acquire Finicity, a North American provider of real-time access to financial data and insights. 
The purchase price is USD 825 million, and Finicity’s existing shareholders have the potential for an earn-out of up to an additional USD 160 million, if performance targets are met.

The addition of Finicity’s complementary technology and teams strengthens the existing Mastercard open banking platform to enable and safeguard a greater choice of financial services, reinforcing the company’s long-standing partnerships with and commitment to financial institutions and fintechs across the globe.

Open banking gives people and businesses more control over their financial data. This includes determining how and where third parties – such as fintechs or other banks – can access that information to provide new services like money management programs or initiate payments on their behalf.

Mastercard has increasingly invested in this space over several years, including the 2019 launch of a set of open banking solutions in Europe. The combination of these efforts with the Finicity technology powering platforms such as Quicken Loans Rocket Mortgage and Experian Boost has the potential to shape new open banking services.

As with past acquisitions, Mastercard does not expect this acquisition to be incrementally dilutive to its business for greater than 24 months. This dilution is driven by investments in the business, including its international expansion, as well as the impact of purchase accounting and integration related costs.

The transaction, which is anticipated to close by year’s end, is subject to regulatory review and other customary closing conditions.


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Keywords: MasterCard, Finicity, Open Banking, data , fintech, banking
Categories: Banking & Fintech | Online & Mobile Banking
Countries: North America
This article is part of category

Banking & Fintech