Visa acquires open banking startup Tink πŸš€

Visa acquires open banking startup Tink πŸš€

What happened β€” Payment network Visa acquired Sweden based fintech, Tink, in a $2.1 billion deal, in a bid to expand business beyond the core card network.

Imagine how you can link your bank account to a payment app? Tink basically works with banks to build that infra, which it then offers as a single API to developers, to be able to make connections and link accounts β€” making users’ banking and transactional information portable.

Why does it matter β€” Last year, Visa had tried buying out the market leader in open banking β€” Plaid, but that deal was blocked by regulators, with Plaid eventually walking away. A bruised Visa was looking for a comeback, and Tink is finally its pick. Tink has 250M users.

Big picture β€” Visa’s business is basically being threatened by the rise of digital wallets, which coupled with QR codes, are rendering β€œcards” useless. Owning the protocol that links users’ bank accounts with disparate fintech’s is one way to defend its eventual disruption.

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