Visa to Acquire Fintech Plaid Inc in $5.3 Billion Deal

There’s been a big development in the Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term space this week, with Visa Inc announcing on Monday that it has agreed to buy Plaid Inc, a privately held software startup, in a deal worth $5.3 billion, according to multiple reports from news outlets.

The deal will give the payments giant greater access to the growing financial technology space. The acquisition also highlights the increasing importance of companies operating in the digital and cashless economy.

Visa continues expansion

This is the latest move from Visa to expand outside of the traditional card-swiping payments model, having acquired cross-border services company Earthport and chargeback-reduction company Verifi last year, among other similar deals.

The $5.3 billion deal includes $4.9 billion of cash consideration and the rest in retention equity and deferred equity. The transaction is expected to close in the next three to six months.

Plaid valued at $2.65 billion

Plaid Inc has built technical infrastructure APIs that connect consumers, traditional financial institutions, and developers. Namely, the company’s technology allows users to link their bank accounts to mobile apps such as Venmo, Chime, and more.

The company is backed by high-profile tech investors, including Mary Meeker and Andreessen Horowitz, as well as Goldman Sachs. The acquisition announced yesterday comes less than two years after the company was valued at $2.65 billion.

Plaid has established a strong position in servicing the digital and cashless economy. According to the San Francisco-based Fintech Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Read this Term firm, its systems have been used by one in four people with a bank account in the United States.

Visa Chairman and Chief Executive Officer Al Kelly said in Monday’s statement: “Plaid is a leader in the fast growing fintech world. The acquisition, combined with our many fintech efforts already underway, will position Visa to deliver even more value for developers, financial institutions and consumers.”