Plaid — the financial technical-company founded in 2013 offers the API interfaces intended for connection of third-party finance applications to bank services. Consumers use such integration to plan the expenses, to manage savings and to control investments. In particular, Plaid services applications for planning of the budget of Mint and Acorns and the translation application of money of Venmo.
2020: Visa purchased Plaid for $5.3 billion
On January 13, 2020 Visa announced acquisition of Plaid for $5.3 billion that there is twice more assessment of the company two years before. The transaction is going to be closed in 3-6 months after receiving approval from regulators.
In Visa consider that this purchase will help the company to bring business to new level and to expand the existing payment system.
After closing of the transaction Plaid will work as the independent company entering into the Visa group. At the same time the startup will use the Visa brand, its resources and the international reputation, it is specified in the press release.
Before it was announced Plaid sale, the company attracted in total $353.3 million investments. Among investors were Visa and Mastercard.
| ||Cooperation of Visa and Plaid will deliver us in financial technical-world epicenter, having expanded our total market and having accelerated a long-term trajectory of revenue growth — the CEO of Visa Al Kelly (Al Kelly) said, commenting on Plaid purchase.|| |
It is supposed that the transaction will allow Visa to strengthen the relations with large banks which reluctantly provide the access to accounts of clients from security reasons.
By the beginning of 2020 every fourth client of banks in the USA (without knowing that) uses Plaid technology for integration of the bank accounts more than with 2500 digital financial products. Service works from 11 thousand financial institutions in the USA, Canada and Europe and connected more than 20 million accounts.