Data

Visa buys Plaid for $5.3 billion

  • Visa is acquiring the data aggregation firm for 2x the valuation of its last investment round.
  • Visa intends on further strengthening its relationships with top fintech firms.
close

Email a Friend

Visa buys Plaid for $5.3 billion

Visa is acquiring the 8-year-old data aggregation firm Plaid.

  • The acquisition price of $5.3 billion is 2x Plaid’s last private valuation from its $250 million investment round in 2018.
  • Visa is also an investor in Swedish payments provider Klarna, which became the most valuable fintech firm in Europe.
  • Visa expects the acquisition will close in three to six months, and it’s paying for the purchase with $4.9 billion in cash and $400 million in stock.
  • Visa was actually an investor in Plaid’s most recent round of funding.

Visa is buying Plaid for 2 reasons.

  • First off, Plaid has built inroads with US fintech firms like Venmo, Square, Chime, and Robinhood, particularly through their developers. Plaid’s 2600 clients give Visa the ability to cross-sell other payment products and services into leading upstarts. Acquiring Plaid’s API library gives Visa a way to monetize data.
  • Visa has focused on expanding its relationships with the fintech community. The company expanded its startup engagement activities with its Fast Track program launch in the US.
  • With over 1 billion transactions per year, Visa Direct powers an entire ecosystem using push payments to pay consumers and businesses.
  • Secondly, although Plaid has begun to go international, Visa can use its own global footprint to really scale Plaid. Visa is active in more than 200 countries.

Plaid co-founder Zach Perret will stay on to run the company.

“This acquisition is the natural evolution of Visa’s 60-year journey from safely and securely connecting buyers and sellers to connecting consumers with digital financial services,” said Al Kelly, chief executive and chairman of Visa. 

“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.”

Plaid recently launched Liabilities, with data coverage for loans and credit cards, and Direct, a product that accelerated fintech integration into the Plaid ecosystem.

0 comments on “Visa buys Plaid for $5.3 billion”

Data

Tearsheet’s 2020 Guide to Financial Data

  • Data underpins the modern financial services ecosystem.
  • Download Tearsheet's 2020 Guide to Financial Data free.
Tearsheet Editors | July 29, 2020
Data

Visa has Plaid and now Mastercard acquires Finicity for close to $1 billion

  • Earlier this year, Visa acquired Plaid, a leading financial data aggregation and insights firm.
  • Now, Mastercard is buying Finicity, pointing to the strategic role data aggregation firms play in global payments.
Michael Deleon | June 23, 2020
Awards, Data

Winner of Tearsheet’s Best New Alternative Data Product: Facteus’ Enlightmint

  • The chaos caused by the current pandemic requires new data analytics tools to understand what's happening and chart a path forward.
  • Facteus' Enlightmint is the winner of Tearsheet's 2020 Award for Best New Alternative Data Product.
Zoe Murphy | June 23, 2020
Data

‘More than the new oil’: Conclusions from Tearsheet’s DataDay Conference

  • The pandemic has shifted activity toward digital channels, amplifying the need for safe and secure data sharing between banks and fintechs.
  • Holding data is no longer a differentiator; institutions that thrive will make use of that data to build ongoing customer relationships.
Suman Bhattacharyya | June 19, 2020
Data

Preview of Tearsheet’s DataDay Conference 2020

  • Tearsheet's DataDay conference brings together data firms, banks, and fintechs around financial data
  • June 2 through 4, DataDay is designed for digital finance managers, product, strategy, and connectivity professionals
Tearsheet Editors | May 29, 2020
More Articles