In an aim to make B2B payments better, Visa is interested in moving further in the fintech space by taking over the financial technology company, Plaid, for $5.3 billion.
Plaid’s integrated platform enables its users to connect their bank accounts to finance apps such as Venmo and Betterment to help facilitate online payments and investments better.
If the deal is successful, it would mean Visa will have a crucial technology layer in the dynamic fintech space. In 2019, around 75% of the Internet of Connected customers around the world used a fintech app to move their money.
According to Visa, 1 out of 4 people with a bank account in the US has used Plaid to share data or to connect to a finance app. Venmo is the best example of this because when a user sets up an account, it is Plaid that allows them to link their bank account.
As per visa, this billion-dollar acquisition will also open new opportunities in the market globally with Plaids’ core focus in finance. Even after the deal, Plaid will continue to operate as an independent company.