LONDON — Visa said Thursday it has agreed to buy British
payments start-up Currencycloud, in its second major fintech acquisition of
2021.
The deal values Currencycloud at £700 million ($962
million), Visa said. The payments giant led an $80 million investment in
Currencycloud at the beginning of 2020. As a result, Visa said the sum it’s
paying for Currencycloud would be reduced by the outstanding equity it already
owns.
Founded in 2007, London-headquartered Currencycloud sells
software for banks and fintech firms to process cross-border payments. It’s one
of many business-focused fintechs that operate behind the scenes powering
popular banking and payment apps like Monzo, Starling and Revolut.
“Consumers and businesses increasingly expect transparency,
speed and simplicity when making or receiving international payments,” said
Colleen Ostrowski, Visa’s global treasurer.
“With our acquisition of Currencycloud, we can support our
clients and partners to further reduce the pain points of cross-border payments
and develop great user experiences for their customers,” she added.
Shares of Visa were about 0.4% higher Thursday morning New
York time. The stock has risen about 23% in the past year thanks to a boom in
digital payments during the coronavirus pandemic.
The acquisition of Currencycloud marks Visa’s second big
takeover this year, according to Crunchbase. The card network company last
month agreed to buy Swedish firm Tink for $2.1 billion, after its attempt to
acquire Plaid, a U.S. rival, was thwarted by U.S. regulators.
The move is part of an ongoing push from Visa and rival
credit card firm Mastercard into fintech, as alternative payment methods like
virtual wallets and bank-to-bank transactions gain traction.
Currencycloud has raised more than $160 million in total
funding from investors including Google parent company Alphabet’s venture
capital arm GV, French bank BNP Paribas and Japanese financial services firm
SBI Holdings.
“Re-imagining how money flows around the global economy just
got more exciting as we join Visa,” said Mike Laven, Currencycloud’s CEO.
“The combination of Currencycloud’s fintech expertise and
Visa’s network will enable us to deliver greater customer value to the
businesses moving money across borders.”
Currencycloud, which has 500 banking and technology clients
in more than 180 countries, will continue to operate from its headquarters in
London and keep its currency management team. The deal is subject to regulatory
approvals and other customary closing conditions, Visa said.
Click here for the
original article.