Visa said Thursday it has agreed to buy Swedish fintech start-up Tink for $ 2.1 billion in a bid to capture part of Europe’s fast-growing open banking market.
Under EU law, banks must provide third-party companies with access to customer data if customers have consented to it. This has created an opportunity for companies like Tink to provide technology for banks to access aggregated financial data, initiate payments, verify account ownership, and build personal finance management tools. .
According to Visa, Tink is now integrated with more than 3,400 banks and financial institutions, reaching millions of bank customers across Europe.
Visa’s acquisition of the Swedish company comes five months after its bid to buy Plaid, a US rival of Vink, for $ 5.3 billion in the face of opposition from US regulators.
“Visa is committed to doing everything possible to foster innovation and empower consumers in support of Europe’s open banking goals,” Visa CEO Al Kelly said in a statement. âBy 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 simpler, more reliable and more secure. “
As the Wall Street Journal reports, “Widespread adoption of open banking has the potential to create an alternative to the debit and credit card networks that dominate the payments world.”
“These open banking initiatives are maturing and gaining momentum very quickly, and they will become a real alternative to infrastructure and card networks,” said Hiroki Takeuchi, founder of London-based startup GoCardless Ltd.
Tink was founded by Swedish entrepreneurs Daniel Kjellen and Fredrik Hedberg in 2012, initially offering a financial management app, but later focusing on delivering its technology to other businesses.
The company was last privately valued at â¬ 680 million and has raised more than $ 300 million from investors including PayPal, SEB and ABN AMRO.
âBy joining Visa, we will be able to go faster and go further than ever before. Visa is the perfect partner for the next leg of Tink’s journey, âsaid Kjellen.