March 19, 2024

Visa buys Plaid cryptocurrency startup for $ 5.3 billion

Visa buys Plaid cryptocurrency startup for $ 5.3 billion

Payment giant Visa intends to acquire cryptocurrency startup Plaid; the transaction amount will be $5.3 billion.

According to Visa, this purchase will help paythe giant not only enter a new business area, but also expand the existing one. It is expected that the transaction will be closed within the next 3-6 months, as regulatory approval is obtained.

Terms of purchase include payment by the companyVisa $4.9 billion in cash and $400 million in deferred payments. Note that the real financial assessment of the crypto service is significantly lower than the amount that Visa is ready to pay. At the moment it is a little over $2.5 billion.

The combination of Visa and Plaid will place us at the epicenter of the fintech world, expanding our overall market and accelerating future revenue growth, – said Al Kelly, CEO and Chairman of Visa.

Startup Plaid Helps Users Connectbank accounts for applications such as Venmo PayPal for convenient exchange of financial information. Among other things, the startup serves cryptocurrency firms such as Coinbase and Abra Wallet.

Let us remember that Visa and Mastercard previously invested in Plaid. To date, the startup's venture funding amounts to more than $350 million.