Visa is acquiring financial services API developer Plaid for $5.3 billion
International payment tech giant Visa has announced that its acquiring Plaid, a fintech company leading the charge in developing financial service application programming interfaces.
Visa cited multiple statistics to justify the acquisition in its official press release, including the fact that "75 percent of the world's internet-enabled consumers used a fintech application to initiate money movement in 2019 versus 18 percent in 2015." Plaid has been one of the leading players in enabling this growth, with 1 in every 4 U.S. bank account holders utilizing Plaid in order "to connect to more than 2,600 fintech developers across more than 11,000 financial institutions."
Plaid comes into play to facilitate linking services such as Chime, TransferWise, and Venmo with bank accounts. This acquisition enables Visa to further develop payment processing capabilities while also further immersing itself into the booming world of financial technology companies.
The acquisition will take approximately 3 to 6 months to complete.