Visa Incorporated says it has agreed to buy privately held software startup Plaid Incorporated in a $5.3 billion deal that will boost the payments giant’s access to the booming financial technology space.
The transaction highlights how traditional financial firms are willing to pay top dollar to acquire businesses which have established strong positions servicing the digital and cashless economy.
Plaid’s technology lets people link their bank accounts to mobile apps such as Venmo, Acorns and Chime, with the San Francisco-based firm saying its systems have been used by one in four people with a U.S. bank account.
The $5.3 billion price given in Monday’s statement is double what Plaid was reportedly valued at during its last fundraising.
Visa expects the deal to close in the next three to six months and benefit its adjusted earnings per share at the end of the third year.
