Investing.com – Visa (NYSE:) said Monday it would buy payments company Plaid for $5.3 billion.
Visa closed 0.8% higher on Monday and shares were up slightly in after-hours trading.
Plaid, valued at roughly $2.65 billion in a 2018 funding round, produces products to enable consumers to conveniently share their financial information with thousands of apps and services such as Acorns, Betterment, Chime, Transferwise and PayPal’s (NASDAQ:) Venmo.
The acquisition of Plaid is expected to open new market opportunities for Visa, both in the U.S. and internationally, deliver enhanced payment capabilities and related value-added services to fintech developers and enable the financial company to work more closely with fintechs through all stages of their development, Visa (NYSE:) said.
“We have strong relationships with both Visa and Plaid. The combination of Plaid’s capabilities with the security and scale of Visa’s global network will provide us with exciting opportunities to enhance our products,” said Dan Schulman, president and CEO of PayPal.
“We believe Visa’s acquisition of Plaid is an important development in giving consumers more security and control over how their financial data is used,” said Gordon Smith, co-president, JPMorgan Chase (NYSE:) and CEO of Consumer and Community Banking. “Protecting customer data and helping them share that information safely has long been a top priority for Chase. We look forward to partnering with Visa to continue building a great experience for our shared customers.”
The transaction, subject to regulatory approvals and other customary closing conditions, is expected to close in the next three to six months.
Written By: Investing.com