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Visa to amass open banking platform Tink for greater than $2 billion

Visa has introduced plans to amass Tink for €1.8 billion, or $2.15 billion at right this moment’s alternate price. Tink has been a number one fintech startup in Europe centered on open banking software programming interface (API).

As we speak’s transfer comes just a few months after Visa deserted its acquisition of Plaid, one other fashionable open banking startup. Initially, Visa deliberate to spend $5.3 billion to amass the American startup. However the firm needed to name off the acquisition after working right into a regulatory wall.

Tink affords a single API in order that clients can connect with financial institution accounts from their very own apps and providers. For example, you may leverage Tink’s API to entry account statements, provoke funds, fetch banking data and refresh this information repeatedly.

Whereas banks and monetary establishments now all have to supply open banking interfaces attributable to EU’s Fee Companies Directive PSD2, there’s no single customary. Tink integrates with 3,400 banks and monetary establishments.

App builders can use the identical API name to work together with financial institution accounts throughout numerous monetary establishments. As you will have guessed, it tremendously simplifies the adoption of open banking options.

300 banks and fintech startups use Tink’s API to entry third-party financial institution data — shoppers embrace PayPal, BNP Paribas, American Specific and Lydia. Total, Tink covers 250 million financial institution clients throughout Europe.

Based mostly in Stockholm, Sweden, Tink operations ought to proceed as common after the acquisition. Visa plans to retain the model and administration crew.

In keeping with Crunchbase data, Tink has raised over $300 million from Daybreak Capital, Eurazeo, HMI Capital, Perception Companions, PayPal Ventures, Creades, Heartcore Capital and others.

“For the previous ten years we have now labored relentlessly to construct Tink into a number one open banking platform in Europe, and we’re extremely happy with what the entire crew at Tink has created collectively,” Tink co-founder and CEO Daniel Kjellén stated in an announcement. “We have now constructed one thing unbelievable and on the identical time we have now solely scratched the floor.”

“Becoming a member of Visa, we can transfer sooner and attain additional than ever earlier than. Visa is the proper associate for the following stage of Tink’s journey, and we’re extremely enthusiastic about what this may deliver to our staff, clients and for the way forward for monetary providers.”

Visa is not going to purchase Plaid after working into regulatory wall