The lines between traditional payments networks and fintech continue to blur with Visa’s acquisition of the London-based firm.
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 new acquisition aims to improve Visa’s foreign exchange business and expand them to serve financial institutions, fintechs and partners. The deal will specifically improve Visa’s payment transparency and speed, the company’s global treasurer Colleen Ostrowski said, stating:
“The acquisition of Currencycloud is another example of Visa executing on our network of networks strategy to facilitate global money movement. Consumers and businesses increasingly expect transparency, speed and simplicity when making or receiving international payments.”
The new acquisition is based on an existing strategic collaboration between the two firms as Visa already owns an equity stake at Currencycloud, valued at 700 million ($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.
According to the announcement, Currencycloud will maintain its operations from the company’s headquarters in London and will keep its current management team. The acquisition is still subject to regulatory approval.
The story is developing and will be updated.