With Visa’s acquisition, the London-based company continues to blur the lines between traditional payment networks and fintech.
Visa officially announced Thursday that it signed a definitive agreement to acquire Currencycloud, a fintech platform supporting about 500 banking and technology clients across more than 180 countries.
The acquisition will improve Visa’s foreign currency business and allow them to expand their reach to financial institutions, fintechs, and partners. Colleen Ostrowski, global treasurer of Visa, stated that the deal will improve Visa’s payment speed and transparency.
“The acquisition Currencycloud is yet another example Visa using our network strategy to facilitate global currency movement. Businesses and consumers expect more transparency, speed, and simplicity in international payments.
This acquisition is based upon an existing strategic partnership between the two companies as Visa already holds a stake in Currencycloud at 700 million dollars ($956 million), including cash and retention incentives. Last year, Visa participated in a $80 million funding round for Currencycloud alongside investors like Japanese financial conglomerate SBI Group.
Currencycloud announced that it will continue operations at its London headquarters and retain its current management team. Regulation approval is still required for the acquisition.