Visa to acquire Plaid in USD 5.3 bln deal

Tuesday 14 January 2020 11:41 CET | News

Visa has decided to acquire Plaid startup, in a deal worth USD 5.3 billion, according to the two companies.

According to CNBC, Plaid’s API software allows startups to connect to users’ bank accounts. High-profile Plaid customers include popular P2P payment app Venmo, mobile investing app Robinhood, and cryptocurrency exchanges Coinbase and Gemini.

As of December 2019, Plaid said one in four people in the US with bank accounts have connected to the fintech company through an app. Visa and rival Mastercard were early investors in the startup, along with the venture arms of Citi and American Express. Goldman Sachs – also an early investor – was the exclusive advisor on the deal, according to CNBC.

Visa said the deal has the potential to add as much as 100 basis points to the company’s net revenue growth by 2021. Plaid has grown steadily with its list of customers since it launched in 2013. The company says it integrates with more than 11,000 banks and connects to more than 20 million consumer accounts.

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Keywords: Visa, Plaid , acquisition, startup
Categories: Payments & Commerce
Countries: World
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