Visa Inc., a credit and payments leader, has spent more than 5 billion dollars for a fintech company that accords opportunities to plug in payments applications to bank accounts. It means favorable news for the following years.
According to the latest data, Visa spent 5.3 billion dollars for the pilot project – the industry has turned into an ecosystem, which is based on a significant number of applications. Due to the software of Plaid, such applications like Square Cash and Venmo will gain access to financial accounts. The fintech company from San Francisco attracted financing last year for the amount of 2.65 billion dollars. Now, it has become higher in two times.
Curiously that Visa has a market value of 420 billion dollars, which is double more than the whole crypto market capitalization. Earnings of the company in 2019 was quite startling – 23 billion dollars.
VISA AMBITIONS IN THE CRYPTO
The firm hopes to widen its client base in the direction of the booming internet payments arena. Nowadays, their activity is based on banks providing credit and debit cards.
Plaid will work with some famous crypto firms as well. Not a surprise that Visa is already expecting a slice of that relatively small but highly profitable digital pie. Without a doubt, Visa has enormous ambitions and facilities to manage additional online services. Due to fame, a company can attract the attention of millions of clients across 200 countries to Plaid.
GOOD SIGNS FOR THE CRYPTO INDUSTRY?
Anthony Pompliano, a co-founder at Morgan Creek Digital, made a note about changes in the industry.
“Existing financial services companies intend to devote the following 4-5 years purchasing different fin-tech projects. If they don’t apply such measures, the absence of fintech projects will ravage them.”
Brad Garlinghouse, Ripple’s chief executive, supported the opinion and added in his Twitter: Not surprisingly, to observe this kind of collaboration, and we anticipate this will set the base for more to happen in 2020 – fintech and crypto.
As a result, there will be a big part of decentralization in the future of finance, and although this move is still far from it, the industry is already varying.
This article is intended as a news item to inform our readers of various events and developments that affect, or that might in the future affect, the value of the cryptocurrency described above. The information contained herein is not intended to provide, and it does not provide, sufficient information to form the basis for an investment decision, and you should not rely on this information for that purpose.