Visa Buys Swedish Fintech Tink For $2.1B

Visa Inc. V announced its acquisition of the Swedish open banking platform Tink for $2.1 billion.

What Happened: The European Union’s Payment Services Directive requires banks to access registered third-party providers on behalf of their customers, and Tink is among the more than 440 third-party providers offering open banking services in EU countries.

Tink, which was founded in 2012, enables banks and fintechs to connect with lenders for the development of new financial products. The Tink platform is integrated with more than 3,400 banks and financial institutions across 18 European markets.

As part of the terms of the acquisition, Tink will retain its brand and current management team, along with its Stockholm headquarters.

“Visa is committed to doing all we can to foster innovation and empower consumers in support of Europe’s open banking goals,” said Al Kelly, CEO and Chairman of Visa. “By bringing together Visa’s network of networks and Tink’s open banking capabilities we will deliver increased value to European consumers and businesses with tools to make their financial lives more simple, reliable and secure.”

See Also: Power Hour: $PLBY Exclusive Interview

What Didn’t Happen: The Tink acquisition follows Visa’s failed effort to acquire the San Francisco-based fintech Plaid Inc.

Visa announced its plans in January 2020, but the U.S. Department of Justice filed a lawsuit last November to stop the $5.3 billion transaction, claiming it would eliminate competition in the online payments market. On Jan. 13, the companies announced the termination of their proposed union.

At last check, Visa was trading at $236.85, slightly below its 52-week high of $238.25 and far from its 52-week low of $179.23.

Photo: MoneyBlogNewz / Flickr Creative Commons.