May 13, 2021

Visa buys Plaid cryptocurrency startup for $ 5.3 billion

Visa buys Plaid cryptocurrency startup for $ 5.3 billion

Payment giant Visa intends to acquire Plaid cryptocurrency startup; The amount of the transaction is $ 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 payment. Note that the real financial assessment of the crypto service is much lower than the amount that Visa is ready to give. At the moment, it is a little over $ 2.5 billion.

The combination of Visa and Plaid will put us at the forefront of the fintech world, expanding our common market and accelerating revenue growth in the future, ”said El 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.

Recall earlier Visa and Mastercard invested in Plaid. To date, venture capital funding for startups is more than $ 350 million.