Visa Inc revealed to have agreed to acquire Tink after cancelling the acquisition of the startup’s US rival, Plaid. The acquisition of Tink reportedly involved a 1.8 billion euro ($2.2 billion) deal.
Founded in 2012, Tink gives banks and other financial firms accesses and allow them to share consumer financial data easier.
Companies like Tink exists because according to European Union’s regulation, banks may only access customer data through registered third party providers. This regulation further boosted competitions and provided fertile ground for fintechs like Tink at the same time.
Noted from Reuters, over 3,400 banks and other institutions have used Tink’s services. Tink also recorded more than 250 million customers in Europe alone.
From Plaid to Tink, why?
The plan to acquire Tink came after the termination of a planned $5.3 billion deal with US data-sharing platform Plaid. Visa put off the agreement due to the US government lawsuit to block deals on antitrust grounds.
Though, the acquisition of Tink might still face the same antitrust concerns, several financial technology experts shared.
Fintech consultancy 11:FS’ head of ventures as well as co-founder, Simon Taylor, said that “Europe is a very different open banking market to the USA,” Reuters quotes.
“But Tink is one of the largest players, and many of the concerns that led to the investigation into the Plaid-Visa deal may apply here,” Taylor continued.
On Visa’s part, the deal is an attempt for the company to diversify revenues. As one of the world’s dominant players in credit cards, Visa has been gaining revenue from them.
However, the increasing pressure from regulators on fees, especially in Europe, has been making it hard for card companies.
The completion of Tink’s acquisition would mark another record for Sweden’s financial technology startup sector. For the past few years, Sweden has been noting achievements through several large companies like Klarna and iZettle.
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