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, Podcasts, Sponsored

‘Earned wage access is the next evolution in improving day-to-day liquidity’: Argyle’s Matthew Gomes

  • Director of strategy at Argyle, Matt Gomes, joins us on the Tearsheet Podcast.
  • Listen in to our conversation about how payroll and employment data API platforms enable financial institutions to bring the next generation of financial products to consumers.
Argyle | September 22, 2022
Data, Podcasts, Sponsored

‘Developers have become as central a figure as the banks’: Fiserv’s Niranjan Ramaswamy

  • VP and GM of embedded fintech at Fiserv, Niranjan Ramaswamy, joins us on the Tearsheet Podcast.
  • Listen to our conversation about how Fiserv empowers developers to build products that bring fintechs and FIs together.
Fiserv | September 21, 2022
Data

Another PayPal exec joins MX: 6 questions with CTO Wes Hummel

  • PayPal vp Wes Hummel joins MX as a CTO, merely weeks after PayPal svp Jim Magats joined MX as its CEO.
  • Hummel believes the next stage of development in the industry will see fintechs connect with the financial industry at large.
Subboh Jaffery | September 08, 2022
Data, Podcasts, Sponsored

‘Not all fintech integrations are created equal’: Fiserv’s Jon Nordhausen

  • VP of product strategy at Fiserv, Jon Nordhausen, joins us on the Tearsheet Podcast.
  • Listen to our conversation about how cloud data integration is removing friction and enabling new capabilities for data to flow seamlessly between fintechs and FIs.
Fiserv | September 07, 2022
Data, Podcasts, Sponsored

‘Data is the crux of open finance’: Fiserv’s Jamie DelMedico

  • General Manager of Fiserv’s Aggregation and Information Services unit, Jamie DelMedico, joins us on the Tearsheet Podcast.
  • Listen in to our conversation about the evolution of data processes that are helping drive the push toward open finance.
Zachary Miller | August 24, 2022
More Articles