Visa announced it has signed a definitive agreement to acquire Tink, a European Open Banking platform. Visa will pay total financial consideration of €1.8 billion, inclusive of cash and retention incentives.
Having been thwarted in its attempt to purchase Plaid last year, Tink allows its customers to access aggregated financial data, use smart financial services such as risk insights and account verification and build personal finance management tools.
Tink is integrated with more than 3,400 banks and financial institutions, reaching millions of bank customers across Europe.
The combination of Visa’s 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.
European Union law – the revised Payment Services Directive (PSD2) – mandates that banks enable access to registered third-party providers on behalf of, and with the consent of, their customers.
As a result, innovators of all kinds, ranging from financial institutions, FinTechs, developers, platform players and merchants, are increasingly leveraging open banking solutions to empower consumers with more choice in how and where they share their financial data.
Tink is one of the over 440 third party providers across Europe that provides Open Banking services.
“For the past ten years we have worked relentlessly to build Tink into a leading open banking platform in Europe, and we are incredibly proud of what the whole team at Tink has created together,” said Daniel Kjellén, CEO and Co-founder of Tink.
“Joining Visa, we will be able to move faster and reach further than ever before. Visa is the perfect partner for the next stage of Tink’s journey, and we are incredibly excited about what this will bring to our employees, customers and for the future of financial services
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.