Visa, the payments technology company, has acquired the Silicon Valley startup Plaid for $5.3 billion.
Plaid is a relatively unknown name for the masses; however, it is a massive player in the FinTech space, as they allow applications to connect with the users’ bank accounts.
Their service is used by big companies such as;
- Square Cash
In the latest funding round, Plaid raised $250 million, with a valuation of $2.65 billion — which is precisely half the amount hat Visa has paid for the company.
Visa paying twice the valuation price may seem extreme, but its an insurance against disruption for them.
Thanks to Visa’s global network with millions of customers in almost every country on Earth, Plaid is ready to go global.