28 Jul Visa to acquire cross-border payments fintech Currencycloud
Visa Inc. is a global payments technology company that connects consumers, businesses, financial institutions, and governments in more than 200 countries and territories to make electronic payments or process related payments. The company operates Visacheckout, which offers a payment platform to online merchants for accepting Visa payments, and a related rewards program, Visa Signature® Card, which offers cardholders bonus points on every purchase based on the amount spent—up to $50,000 per year in the U.S.
According to Visa, it’s all about the money. Visa’s cross-border payments business is on track to reach $20 billion in annualized revenue, a number that doesn’t even begin to describe the true scale of Visa’s ambitions. To continue its growth, Visa is doubling down on its focus on cross-border payments, and it’s in a prime position to do so. Visa’s cross-border payment business is much more than a mere payments unit; it’s a business unit that’s growing at an exceptional rate and has the potential to disrupt the core of the payments industry.
Visa Inc. is aggressively moving into the growing fintech market. The company is teaming up with Currencycloud, a New York-based provider of cloud-based payments technology. In a blog post, Currencycloud said that the two companies have agreed to “explore a potential acquisition of Currencycloud by Visa.” This is Visa’s first investment in the fintech space.
Visa said on Thursday that it has reached a deal to buy Currencycloud, a fintech platform that serves over 500 financial and technology customers in over 180 countries.
The new purchase will help Visa enhance its foreign exchange business and extend its reach to include financial institutions, fintechs, and other partners. The agreement will enhance Visa’s payment transparency and speed, according to Colleen Ostrowski, the company’s global treasurer.
“Visa’s purchase of Currencycloud is another illustration of the company’s network-of-networks approach to let people transfer money across the world. When making or receiving foreign payments, consumers and companies are increasingly expecting openness, speed, and simplicity.”
The new purchase is based on an existing strategic partnership between the two companies, since Visa currently holds a 700 million ($956 million) ownership interest in Currencycloud, including cash and retention incentives. Visa joined investors such as SBI Group, a Japanese financial giant, in a $80 million financing round for Currencycloud last year.
Currencycloud will continue to operate from its London headquarters and will retain its existing management team, according to the statement. Regulatory clearance for the deal is still pending.
The story will be updated as it progresses.
Visa Inc., the largest processor of credit card transactions in the world, is acquiring fintech Currencycloud for more than $200 million in cash. Visa is a subsidiary of Vcommerce Inc., a global payments giant that is currently worth about $130 billion. Currencycloud, which helps financial institutions and card issuers better manage cross-border transactions, is a San Francisco-based technology company that has been around since 2012.. Read more about mike laven and let us know what you think.
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