Visa learns sellers have upper hand in fintech M&A

📆 1/14/2020 6:09 PM
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Visa is shelling out $5.3 bln for Plaid, which enables payments that bypass the card network. For a rich acquisition multiple, it can hedge against a threat. But the price tag shows sellers have the upper hand in fintech dealmaking, says LiamWardProud:

Visa said on Jan. 13 that it had agreed to buy privately-held software startup Plaid for $5.3 billion, including $400 million of deferred equity-based compensation for the target company’s staff.

Plaid's technology lets people link their bank accounts to mobile apps such as Venmo, Acorns and Chime. The San Francisco-based firm says its systems have been used by one in four people with a U.S. bank account.

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