SAN FRANCISCO, Jan. 13 (Xinhua) -- Visa Inc. said Monday it is to buy fintech startup Plaid for 5.3 billion U.S. dollars, in an effort to boost the growth trajectory of its business.
San Francisco-based Visa said Plaid's network makes it easy for people to securely connect their financial accounts to the internet-based apps of other fintech firms, such as Zelle or Chime, to easier manage their finances.
Al Kelly, CEO and chairman of Visa, hailed Plaid, also headquartered in San Francisco, as a leader in the fast growing fintech world. He also praised Plaid, founded in 2013, for its "best-in-class capabilities and talent."
"The acquisition, combined with our many fintech efforts already underway, will position Visa to deliver even more value for developers, financial institutions and consumers," Kelly said.
The deal will greatly enhance Visa's fintech unit as Plaid's fintech-centric business will create new market opportunities for Visa, both in the Unites States and other parts of the world, Visa said.
The acquisition, which is subject to regulatory approvals, is expected to be closed in the next three to six months.