Visa signs agreement to acquire Tink for €1.8 billion

After the US Department of Justice quashed its acquisition of consumer open banking platform Plaid, card giant Visa now has signed a definitive agreement to acquire Tink which is a Europe based open banking platform. Visa will pay €1.8 billion inclusive of cash and retention incentives, to acquire Tink.

Tink is an open banking platform that serves and enables ‘financial institutions, fintechs and merchants to build tailored financial management tools, products and services for European consumers and businesses based on their financial data’. With its API, it allows its customers to access aggregated financial data, use financial services such as risk insights and account verification and build personal finance management tools.

The company has integrated more than 3,400 banks and financial institutions across Europe and after being acquired by Visa, the company will retain its brand and current management team.

The press release stated that the ‘combination of Visa’s proven infrastructure and sustained investment in resilience, cybersecurity and fraud prevention with Tink’s APIs, technology and customer relationships is expected to help accelerate the adoption of open banking in Europe by ensuring a secure, reliable platform for innovation’.

“By bringing together Visa’s network of networks and Tink’s open banking capabilities we will deliver increased value to European consumers and businesses with tools to make their financial lives more simple, reliable and secure”, said Al Kelly, CEO and Chairman of Visa.

The transaction is subject to regulatory approvals and other customary closing conditions. Visa will fund the transaction from cash on hand and this transaction will have no impact on Visa’s previously announced stock buyback program or dividend policy, as stated in the press release.