Visa makes another big bet on fintech, buying UK payments start-up Currencycloud

A Visa debit card.

Simon Dawson | Bloomberg | Getty Photos

LONDON — Visa acknowledged Thursday it has agreed to grab British payments originate-up Currencycloud, in its 2d valuable fintech acquisition of 2021.

The deal values Currencycloud at £700 million ($962 million), Visa acknowledged. The payments huge led an $80 million funding in Currencycloud on the starting of 2020. As a outcome, Visa acknowledged the sum or no longer it’s paying for Currencycloud would possibly perhaps maybe well be reduced by the excellent fairness it already owns.

Based mostly in 2007, London-headquartered Currencycloud sells instrument for banks and fintech firms to route of tainted-border payments. Or no longer it’s one in every of many commercial-focused fintechs that operate late the scenes powering standard banking and price apps adore Monzo, Starling and Revolut.

“Customers and companies an increasing kind of quiz transparency, velocity and straightforwardness when making or receiving world payments,” acknowledged Colleen Ostrowski, Visa’s world treasurer.

“With our acquisition of Currencycloud, we will have the option to aid our purchasers and companions to additional lower the trouble facets of tainted-border payments and affect huge user experiences for his or her customers,” she added.

Shares of Visa barely moved in pre-market procuring and selling. The stock has risen over 22% in the previous 300 and sixty five days, nonetheless, attributable to a enhance in digital payments one day of the coronavirus pandemic.

The acquisition of Currencycloud marks Visa’s 2d fintech deal this 300 and sixty five days, in line with Crunchbase. The cardboard community firm final month agreed to grab Swedish agency Tink for $2.1 billion, after its strive to fetch Plaid, a U.S. rival, modified into thwarted by U.S. regulators.

Currencycloud has raised more than $160 million in complete from merchants along with Google guardian firm Alphabet’s project capital arm GV, French financial institution BNP Paribas and Japanese financial services and products agency SBI Holdings.

“Re-imagining how cash flows everywhere in the arena economic system staunch obtained more entertaining as we be a part of Visa,” acknowledged Mike Laven, Currencycloud’s CEO.

“The combo of Currencycloud’s fintech journey and Visa’s community will enable us to yell bigger customer value to the companies transferring cash all over borders.”

Currencycloud, which has 500 banking and technology purchasers in additional than 180 international locations, will continue to operate from its headquarters in London and retain its forex management crew. The deal is arena to regulatory approvals and other customary closing stipulations, Visa acknowledged.

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