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.
close

Email a Friend

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

Mastercard announced it has entered into an agreement to acquire Finicity, a leading provider of real-time access to financial data and insights.

  • The purchase price is $825 million, with the potential of another $160 million earn-out if the company meets performance targets.
  • The addition of Finicity strengthens Mastercard’s activity in open banking, using the underlying financial data to connect the merchants, consumers, partners, and fintechs in the card company’s ecosystem.

“Open banking is a growing global trend and a strategically important space for us. With the addition of Finicity, we expect to not only advance our open banking strategy, but enhance how we support and accelerate today’s digital economy across several markets,” said Michael Miebach, president of Mastercard.

In January 2020, Visa announced it was acquiring Plaid, another major player in the financial data and insights field.

  • Visa paid $5.3 billion to purchase the data aggregator.
  • At the time, Visa published a presentation deck outlining its rationale for acquiring Plaid.
  • Mastercard is investing in its community-building activity — its Start Path accelerator program identifyies early stage fintech firms to help accelerate their integrations on to its own rails.
  • Mastercard’s Start Path won Tearsheet’s 2020 Best Innovation Program Award.
  • With a marketcap over $300 billion, it’s unlikely Finicity will accelerate revenues in a meaningful way for a company the size of Mastercard.
  • Instead, like Plaid can do with Visa, Finicity’s  inroads in the fintech and lending community would offer Mastercard some cross-selling opportunities of its core offerings.

SPONSORED

Finicity doesn’t always get the same press as Plaid or MX does, but it’s one of a handful of data firms working across the industry.

  • Finicity won Tearsheet’s Best Data Aggregator/Bank Partnership Award this month with its Direct Access Connection Partnerships.
  • It has over 25 of the largest financial institutions in its direct access integration pipeline, with many already live, including JPMorgan Chase, Wells Fargo and Capital One.
  • These connections eliminate sharing credentials by using secure APIs which use tokenized access which the consumer provides on the FIs secure web domain and not on the access provider or app’s domain.

“Finicity has a proven business, built on partnerships with thousands of banks and fintechs, similar to us. Finicity also shares our commitment to consumer-centric data practices, ensuring consumers have a say in how and where their information should be used,” said Miebach.

“It’s through the use of next generation open banking APIs and clear consumer approvals that this financial information can deliver streamlined loan and mortgage processes, rapid account-based payment initiation and personal financial management solutions.”

0 comments on “Visa has Plaid and now Mastercard acquires Finicity for close to $1 billion”

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
Data, Podcasts

Case study: How Finlocker and Fiserv enhance data, lower lending costs and increase throughput for mortgage originators to benefit consumer financial wellness

  • The work both firms have done together is a story of collaboration and tapping what each does best.
  • Fiserv's Paul Diegelman will be speaking at Tearsheet's DataDay Conference next week.
Zachary Miller | May 27, 2020
Data, Podcasts

Plaid’s Niko Karvounis: ‘Connectivity is a foundational element of digital finance’

  • Banks are more interested in providing their customers connectivity to their data.
  • Plaid Exchange gives FIs a single API integration to stand up an open finance solution.
Zachary Miller | May 26, 2020
More Articles