Visa Announces It Will Acquire FinTech Startup, Plaid

Wednesday, February 19th, 2020

In a strategic move, Visa said that it would acquire Plaid, a financial technology startup that enables users to interact with their bank accounts through applications. According to the announcement made the beginning of the year, the deal is valued at $5.3 billion.

Consumers today demand speed, convenience and options. In a world with ever-growing cyber-attacks, safety is also a huge priority. Visa says that Plaid’s products would allow consumers to (safely) share financial information with apps and services such as Acorns, TransferWise and Venmo.

“Consumers rely on these apps and services to help plan their spending, increase their savings and monitor their investments. For example, when a user sets up a Venmo account, it is Plaid that enables the user to link their bank account to their Venmo account,” Visa officials explained in a statement on the deal.

The deal is expected to close over the next three to six months. The hope is that the acquisition will open up new business opportunities and add complementary enhancements to Visa’s existing business. In fact, Plaid’s fintech-centric business opens up both domestic and international opportunities for the company. Specifically, the acquisition will:

• Give the opportunity to deliver enhanced payment capabilities and related value-added services to fintech developers.
• It will also allow Visa to work more closely with fintechs through their development and drive growth in the company’s core business.

Keeping Up with Payment Trends

The customer experience has been – and continues to be – a major topic in payments. In fact, it has become the prime competitive differentiator. Customer expectations have reached a whole new stage: consumers want and expect invisible frictionless payments. Through acquisitions like Visa and Plaid, the payment process continues to blend and become even more seamless.

Payments are also showing up in the places you would least expect and in a variety of industries. For example, intelligent cars are starting to incorporate payments. This technology and processing option will allow customers to save payment methods for tolls, gas or even drive-throughs – all without touching their wallet.

The endless possibilities and increasing expectations mean outdated tech will no longer cut it. Consumers are less and less likely to turn a blind eye when they encounter an outdated processing experience. To keep up, businesses will need to stay up to date with tech changes, payment processing options and industry moves (like Visa’s recent acquisition announcement).

If you need to find the right payment provider for your business type and industry, consider the information Best Payment Providers have to offer. Find a payment provider that meets your needs and who offers the lowest rates, fast approvals and more.