Payment giant Visa has announced the acquisition of financial technology company Plaid for $5.3 billion. The move comes as a part of a strategy to establish a strong position in the digital and cashless economy. Plaid offers a financial application that connects apps and services with financial services such as Venmo, Acorns, and others. It connects with more than 11,000 financial institutions across the US, Canada, and Europe.
Visa aims to open new market opportunities and deliver enhanced payment capabilities and related services to fin-tech developers. The acquisition is expected to close in the next three to six months. Plaid will continue to operate as a separate business unit under Visa’s ownership and work with Visa’s brand, resources, and international footprint.