Jan 15, 2020 02:30 UTC
| Updated:
Jan 15, 2020 at 02:30 UTC
Visa Acquires Crypto-Friendly Firm Plaid for $5.3 Billion
A popular payments giant, Visa is all set to acquire a crypto-serving FinTech unicorn, Plaid, for $5.3 billion.
The news came to light on Monday when Visa said the acquisition would be helpful for the payment giant to enter into the new businesses and enhance its current card business. The deal is anticipated to end in the next 3 to 6 months, only awaiting regulatory approvals.
Plaid is known for helping users to connect their bank accounts to the applications, like PayPal’s Venmo, for conveniently sharing their financial data. The startup firm is also known for serving cryptocurrency organizations, like Coinbase and Abra wallet.
Visa would reportedly pay $4.9 billion in cash and nearly $400 million in retention equity as well as deferred equity, as indicated by a presentation deck. The payments giant, Visa, is paying a huge premium over Plaid’s valuation that recently hit over $2.5 billion.
Al Kelly, the Chairman and CEO of Visa, said –
“The combination of Visa and Plaid will put us at the epicenter of the FinTech world, expanding our total addressable market and accelerating our long-term revenue growth trajectory.”
It is widely believed that the deal has the potential to help Visa in adding 80-100 basis points to its revenue growth by the end of 2021, as per the presentation deck.
Both Visa and Mastercard put an undisclosed entirety in Plaid as of late. Established in 2012, the startup has brought over $350 million up in capital funding to date.
Kapil Gauhar
Kapil Gauhar is the founder of Blogger’s Gyan. He is a Passionate Blogger, a Big Thinker and a Creative Writer. His passion for doing friendship with words and letting people know about the wonders of the Digital World is what motivates him to take writing as a career.
