Visa has signed an agreement to acquired Swedish fintech Tink for USD 2.1 billion or 1.8 billion euros. The move seems to be a calculated effort by the payment giant as it is likely to bolster its digital ambitions. The deal has been announced after Visa backed out of a USD 3.5 billion deal to buy Plaid. The Silicon Valley fintech is considered to be an American rival to the Swedish financial technology start-up. The efforts to acquire Plaid were torpedoed by US regulators. Plaid then decided to go it alone and operate as an independent company. It was last privately valued by investors at USD 13.4 billion. “Visa is committed to all necessary steps required to foster innovation and empower customers in support of open banking goals of Europe,” said Al Kelly, CEO, and chairperson of Visa.
“Visa is working to provide better options to consumers as well as businesses of Europe to make their lives simpler. For this we are bringing a network of Visa with networks and open banking capabilities of Tink,” the chief executive officer said. Tink, which is headquartered in Stockholm, operates in a nascent space known as opening banking. The technology and APIs of Tink combined with the massive infrastructure of Visa are expected to take forward open banking in Europe. Tink is helping banks FinTechs and merchants to develop custom financial tools and products. Swedish entrepreneurs Daniel Kjellén and Fredrik Hedberg founded Tink in 2012. The startup initially started working as a financial management app. Later, it started providing its technology to other businesses.
The startup is currently working with a strength of around 400 employees. It has raised over USD 300 million from investors. Among the investors are ABN AMRO, PayPal and SEB. Technology provided by Tink is helping connect banks and fintech firms connect with more than 3,000 lenders. Commenting on the deal, the founders of Tink said that they share a common mission with Visa. “As we got to know more about Visa, it became more clear that we are working for the same mission of pushing digital financial services. The deal clearly means that we will now be able to reach more people at a fast pace. One thing was very clear to us that Visa is the most suitable partner for the next stage of our journey.” However, the deal between Visa and Tink is subject to regulatory approvals.