Visa buys financial technology company Plaid for $5.3B

Visa to Buy Plaid for $5.3 Billion in Bid to Reach Startups

Visa to Buy Plaid for $5.3 Billion in Bid to Reach Startups

Payments giant Visa announced Monday that it plans to acquire Plaid, makers of a platform that lets people connect their bank accounts to finance apps like Venmo and Betterment, for $5.3 billion.

Plaid focuses on enabling consumers and businesses to interact with their bank accounts, check balances, and make payments through financial technology applications.

The WSJ couldn't learn the terms of the deal; Plaid, though, was valued at ~$2.65B in a 2018 funding round.

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It was later revealed by Plaid that both Visa and rival Mastercard were investors in that round.

The takeover of the fintech darling will give Visa a great opportunity to "accelerate" the company's business beyond cards, according to its CEO Al Kelly. Plaid, whose technology lets people link their bank accounts to mobile apps like Venmo, was founded in 2013 and now connects with over 11,000 financial institutions across the United States, Canada and Europe.

Visa and Plaid respectively used Lazard and Goldman Sachs as their financial advisors.

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