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Visa is buying the startup at a price significantly higher than its valuation in its last round of funding in December 2020, when it was valued at €680 million. Visa intends to retain the Tink brand, the service will continue to be managed by its current executives and will remain headquartered in Stockholm.
The acquisition of the service was announced shortly after Visa's failed purchase of another fintech start-up, US-based Plaid. Visa had agreed to buy it last year but said in January that the merger had been called off due to complaints from the US Justice Department.
Tink and Plaid operate in the same area: so-called open banking. This refers to the use of open APIs (application programming interfaces) in the financial sector, which gives developers and third parties access to banking data, subject to customer consent. Such data allows the creation of new financial products, linking bank accounts with mobile apps, etc.
Open banking is particularly prevalent in the EU and the UK, where regulations require financial institutions to share user data with registered third parties to maintain competition. About 3,400 banks and other financial institutions with more than 250 million customers across Europe collaborate with Tink, established in 2012.
source: reuters.com
The acquisition of the service was announced shortly after Visa's failed purchase of another fintech start-up, US-based Plaid. Visa had agreed to buy it last year but said in January that the merger had been called off due to complaints from the US Justice Department.
Tink and Plaid operate in the same area: so-called open banking. This refers to the use of open APIs (application programming interfaces) in the financial sector, which gives developers and third parties access to banking data, subject to customer consent. Such data allows the creation of new financial products, linking bank accounts with mobile apps, etc.
Open banking is particularly prevalent in the EU and the UK, where regulations require financial institutions to share user data with registered third parties to maintain competition. About 3,400 banks and other financial institutions with more than 250 million customers across Europe collaborate with Tink, established in 2012.
source: reuters.com
