Why Visa Is Buying Fintech Startup Plaid For $5.3 Billion
Visa announced that it plans to acquire Plaid, a startup that connects payment apps like Venmo to users’ bank accounts to transfer funds they have received through the apps. The acquisition will cost Visa a whopping $5.3 billion, although the company Plaid was valued at $2.65 billion just a year ago. However, in 2019, Plaid doubled its number of customers and expanded beyond the US into European countries.
Visa’s primary reasons for buying Plaid include Visa’s access to an expanding base of customers that it can sell additional payment services to. It also includes the possibility of taking Plaid international, beyond its current limited reach. According to reputable sources, Plaid’s 2019 revenue totaled between $100 and $200 million.