Visa to Acquire Plaid in $5.3 Billion Deal

Updated 1/14/2020: The first big fintech acquisition of the year just crossed the headlines: Visa has agreed to acquire innovative fintech Plaid for a reported $5.3 billion in “total purchase consideration.”

“Today marks an important milestone for our company and for fintech,” company co-founder and CEO Zach Perret wrote on the Plaid blog earlier today. “What started with two founders building in a cramped conference room has become an incredible network that enables millions of consumers to interact with over 2,500 digital finance products.”

Plaid’s technology connects digital consumers with thousands of apps and services ranging from Transferwise and Betterment to Chime, Acorns, and popular payment app, Venmo. The company estimates that one in four individuals with a U.S. bank account have used Plaid to connect with thousands of developers across 11,000+ financial institutions.

Visa said the acquisition will bolster the company’s capacity to serve and reputation with fintech developers – especially when it comes to providing them with enhanced payment functionality and related value-added services. Visa also believes the acquisition will help open new business opportunities both in the U.S. and around the world.

“We are extremely excited about our acquisition of Plaid and how it enhances the growth trajectory of our business,” Visa CEO and chairman Al Kelly said. “Plaid is a leader in the fast growing fintech world with best-in-class capabilities and talent. The acquisition, combined with our many fintech efforts already underway, will position Visa to deliver even more value for developers, financial institutions, and consumers.”

Visa participated in Plaid’s Series C round in 2018, which was led by Index Ventures and Kleiner Perkins. The company raised $250 million in that funding raising effort. Plaid began the year with an acquisition of its own, purchasing account aggregation and data analytics technology provider Quovo in January of 2019. The value of that deal was not disclosed; Bloomberg reported that the sticker price for Quovo could have been as high as $200 million. Quovo, incidentally, is also a FinDEVr alum, participating in our New York developers conference in 2017.

Plaid demonstrated its technology at FinDEVrSiliconValley in 2014, demonstrating how its API for Financial Infrastructure enabled developers to leverage data quickly, efficiently, and securely power fintech applications. Headquartered in San Francisco, California and founded in 2012, Plaid had raised $310 million in funding previous to today’s announcement.

The ripples from the acquisition news are reverberating throughout the fintech community. And while some are worried about the ability of the innovative startup from San Francisco continue to drive change in the industry, others are busy heralding the news as a victory for fintech and incumbent financial services firms, alike.

Indeed, the acquisition of Plaid by Visa has put other fintechs involved in financial data on notice that they too may hear an inquiring knock on their proverbial doors. One observer on Twitter asked “Will $MA pick up Finicity now?” As of this writing, neither company has deigned to comment.

Finovate Alumni News


  • Scalable Capital Raises $28 Million.
  • Finicity Launches Student Loan Account Verification.

Around the web

  • Splitit announces partnership with music software provider Ableton.
  • Jack Henry reports partnerships with 57 community financial institutions in fiscal 2019.
  • Western Union deploys customer journey optimization solution, Nexidia, from Nice Systems.
  • Venmo launches instant transfers to bank accounts.
  • Quadient unveils new archived document and data retrieval solution.
  • Euromoney features BioCatch in its look at the fintech scene in Israel.
  • SuperMoney tops $2 billion in loan requests via its online lending marketplace platform.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Finovate Alumni News

Around the web

  • New partnership makes Venmo a payment option for Uber and Uber Eats.
  • Hedgeable announces plan to end management of accounts by mid-August.
  • IdentityMind Global to provide KYC for Ontology Trust Ecosystem.
  • Socure named to Red Herring Top 100 in North America for 2018.
  • Mortgage Cadence integrates compliance auditing and monitoring into its loan origination platform.
  • Bluefin and Verifone team up to boost payment security with PCI-validated Point-to-Point Encryption (P2PE).
  • Twisto payment platform goes live in Poland this week.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Finovate Alumni News


  • Blend, Roostify Earn Honors at MBA Insights 2018 Tech All-Star Awards.
  • Qapital’s Latest $30 Million to Fuel New Roboadvisory Tools.

Around the web

  • FICO boosts financial crime protection with new suite of solutions.
  • Ping Identity achieves ISO 27001 Certification.
  • Luxoft teams with Softbank Robotics America to bring its humanoid robot Pepper to life.
  • MicroStrategy releases 3 new gateways to Microsoft Azure.
  • Woleet, a blockchain-based timestamp and signature app, is now available on Ledger Nano S.
  • Grubhub partners with PayPal’s Venmo on bill-splitting feature.
  • Avoka sees positive trends for North American banks in its 2018 State of Digital Sales in Banking Report.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Finovate Alumni News


  • BankBazaar Receives $30 Million in Funding Round Led by Experian.
  • Feedzai Secures $50 Million in New Funding.
  • BlueVine Lands $130 Million in Debt Financing.
  • Sensibill Brings Receipt Management to Royal Bank of Scotland’s Business Banking Customers.

Around the web

  • Entersekt hires Sherif Samy as SVP for North American operations.
  • Visa and Billtrust team up to streamline B2B payment reconciliation and support automation of virtual card payments.
  • PayPal announces Vemno is now payment option at more than two million U.S. retailers.
  • Narrative Science wins Microsoft Office 2017 App Award for Best Business Value.
  • TransCard partners with ExpenseAnywhere to Deliver Automated Payment Process Management Solutions.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Finovate Alumni News


  • Behalf Teams Up with FinWise Bank to Boost Small Business Lending Options
  • Samsung to Power Biometric Authentication Pilot for Bank of America
  • ACH Alert’s Fraud Prevention HQ Empowers Account Holders to Stop Suspicious Transactions

Around the web

  • PayPal unveils two new innovation labs in India.
  • Albany, New York-based SEFCU chooses Fiserv as technology partner.
  • FICO selects Amazon Web Services as its cloud provider.
  • SF Chronicle profiles mortgagetech innovator, Unison, in feature on downpayment assistance for Bay Area homebuyers. Join them next month in New York for FinovateFall.
  • GoBankingRates highlights AutoGravity, M1 Finance, Venmo, Mint in list of best personal finance apps
  • hires Julie Filion as Chief Marketing Officer.
  • eMoney Advisor moving into Rhode Island offices, expects to hire 100 by 2020.
  • Flywire Offers Summertime Deal for International Tuition Payments with Mastercard.
  • StreetShares adds Heather Tuason as new Chief Product Officer.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Finovate Alumni News


  • HooYu Brings Identity Confirmation Technology to BCRemit.
  • StreetShares Raises $10.3 Million for “Shark Tank Meets eBay” Approach to P2P Lending.
  • Flywire Expands Operations in Japan, Forms Partnership with Volvo.

Around the web

  • UPS Capital launches cross-border B2B payment service powered by Payoneer.
  • Risk Ident opens new U.S. office at Cambridge Innovation Center, near Boston, Massachusetts.
  • Venmo introduces QR code feature to help users find payee profiles faster.
  • eMoney launches redesigned website with a new UX enhanced navigation and multimedia content.
  • Digiliti Money (formerly Cachet Financial Solutions) appoints interim CEO.
  • Qapital now offers checking account and debit card.
  • BBVA joins Singapore-based trade finance platform Capital and Credit Risk Manager
  • Al Masraf selects Temenos’ digital banking technology
  • Kony announces V8 release of Kony AppPlatform to help developers design, develop and deliver omnichannel apps fast.
  • Shoeboxed launches Fetch, a new expense system
  • Trusona opens new office in Tokyo, Japan.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

First Look: Zelle Takes on Venmo, Square and Itself

Seventeen years ago PayPal took on Wells Fargo’s Billpoint (joint venture with eBay) and Citibank’s (C2IT) fledgling P2P payment services. It wasn’t a fair fight. With a $400 million VC war chest and an all-star exec team (Elon Musk, Peter Thiel, Max Levchin, David Sacks, Reid Hoffman and so on), the fight didn’t make it past the first round. Within a year PayPal had a stranglehold on eBay payments due to its superior UX and aggressive business model.

Now the banks are back with Zellea rebranded version of the clearXchange that has been up and running for six years. The service already has great traction. In 2016, Early Warning, the bank-owned operator (see note 1), processed 170 million transfers totaling $55 billion for the 85 million customers of their big-bank owners. That works out to exactly 2 transactions per customer annually with an average of $320 per transfer.

The value transferred is three times the size of Venmo’s $17.6 billion in volume, though the number of Venmo transactions is probably higher, perhaps considerably higher if its average transaction size is in the $15 to $20 range implying 1 billion venmos last year.

Using Zelle
Yesterday and today I used the mobile and desktop Zelle from Capital One for the first time. Other than the glitch with my mobile phone number (see note 3), which would stop many consumers from going further, setup was quick and easy. The desktop version is pretty straightforward, with a Send Money with Zelle link in the middle of the Payments menu (see screenshot below). This assumes you know what Zelle is, or you just ignore it since it comes after the key words, “Send Money.”

But the mobile UI is less intuitive. It wasn’t initially obvious how to use it because there is no Zelle or payments navigation item in the Capital One app…yet (it’s only been out since June 12). However, once you go to your checking account section, it’s one of the main navigation items at the top (see inset below).


I was initially surprised at what happened with my test payment. I sent a buck to my son (sorry, Paul I only had $1.12 in my account) and I was pleasantly surprised to find that my payment had been “qualified for expedited deposit” and he’d have the cash right away without the usual ACH delay.

But when my son forwarded the email he received, I was surprised to find that my Capital One payment has morphed into a branded Chase QuickPay with Zelle. There was no mention of Capital One anywhere in the message (see screenshot #1).

That makes sense now. My son has a Chase account and was already registered with Chase QuickPay. If he’d not already been registered, he would have received a Capital One branded email (see screenshot #2 below).

Why the new brand?
Zelle/clearXchange will continue to grow at a good clip if its big-bank owners stick with it. It’s already 3x the size of media darling Venmo (owned by PayPal). But I’m not sure the massive investment in creating a new payments brand is worthwhile (cut to the boardroom discussion of a 2018 Super Bowl ad).

I get that they are trying to create another Visa/Mastercard network that consumers recognize and trust. But unlike credit transactions at the POS in the 1950s and 60s, p2p payments are relatively understood by consumers and have much less need of a third-party organization to achieve the network effects. The big banks are already wired to each other and what’s needed, what clearXchange was already offering, is just a simpler UX inside each bank’s online and mobile application. Adding the Zelle name to the mix seems like a step backwards on that front.

Maybe I’m wrong and we’ll all be Zelling money to Mars in a few decades. But I’m not convinced the new brand will stand the test of time.

Bottom line: Love the service, which I expect to flourish, but confused by the branding.

#1: Email to a pre-registered Zelle recipient banking at Chase


#2 Email to a Zelle recipient not registered with a participating bank

Author: Jim Bruene is Founder & Senior Advisor to Finovate as well as Principal of BUX Advisors, a financial services user-experience consultancy. 


  1. Owners of Early Warning (aka Zelle) are: Bank of America, BB&T, Capital One, JPMorgan Chase, PNC, U.S. Bank, and Wells Fargo.
  2. If I were any bank other than BofA and Capital One, I’d be crying foul over how the banks are listed in alphabetic order. On the desktop, it doesn’t matter (yet) since they are all above the fold. But on mobile, you can only see BofA and Capital One, and there is no indicator that you should scroll for more.
  3. I received a fatal error message when I tried to use my mobile number as contact to send Zelle payments (see inset) from Capital One’s mobile app. This could be something particular to my account, but from the cryptic popup message, it sounds like my phone is registered at another bank. And that would be a big concern for most customers who would fear that identity thieves are hard at work draining their accounts.
  4. Image credit

Finovate Alumni News


  • Build Intelligent Apps at Enterprise Scale with Ayasdi Envision.
  • PayPal’s Venmo Goes Head-to-Head with Zelle, Square Cash, and… Amazon

Around the web

  • EverSafe earns spot among the winners of Centre for Financial Services’ Financial Solutions Lab competition.
  • FIS introduces test solution to help FIs embrace real-time payments.
  • iovation to integrate its device-based authentication technology with PingFederate from Ping Identity.
  • BBVA taps into biometrics with new firm Veridas.
  • Expensify integrates with FinancialForce Accounting and PSA.
  • Rabobank selects Finastra (the merger of Misys and D+H) payment services hub for cross-border payments.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Finovate Alumni News


  • Check out this week’s FinDEVr APIntelligence.
  • Robo Advisor Wealthfront Launches Line of Credit to Make Users More Liquid.
  • Our latest FinovateSpring Sneak Peeks are up! Meet Unison, Hedgeable AI Lab, AccountScore, SynapsePay, and HEDG.


  • Xero Sees $26.4 Million Investment

Around the web

  • Money management app, TD MySpend from TD Bank, closes in on one million users.
  • mBank launches mobile app with Android Pay.
  • ACI Worldwide broadens its relationship with Ant Financial Services mobile payment provider, Alipay.
  • PYMNTS reportsTransferWise To Move Headquarters Out Of UK Due To Brexit.
  • NICE Actimize Launches ActimizeWatch, a Fraud Analytics Optimization Solution.
  • Fiserv to power core processing for SouthEast bank.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Finovate Alumni News

Around the web

  • Virtual Piggy brings on President &CEO of Broad Street Consulting Advisors as its Senior Advisor.
  • Cachet streamlines RDC check settlement process for Banks and Credit Unions.
  • Finovate/FinDEVr alums populate TradeStreaming Fintech’s companies to watch in 2017 list.
  • Finance Disrupted interviews Xignite CEO and founder, Stephane Dubois.
  • Venmo, LearnVest, Qapital, Level Money, and PayPal featured in PC Mag’s Best Mobile Finance Apps of 2017.
  • From Founder to CEO talks with GainX founder & CEO Angelique Mohring. See GainX at FinovateEurope 2017 in London in February.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Fintech Trending: P2P, EMV, NFC, NLP…. OMG

A look at the trending topics of the past two weeks, co-authored by Finovate’s research analysts David Penn and Julie (Schicktanz) Muhn.

Big handshakes

Cardtronics acquires DirectCash Payments

In a $460 million deal, Texas-based ATM operator Cardtronics has acquired Canada-based DirectCash Payments. The deal is expected to help Cardtronics expand into Canada and the United Kingdom. DirectCash Payments has 25,000 ATMs around the globe, primarily in Australia, Canada, and the U.K. Once the deal closes in Q1 of 2017, it will boost Cardtronics’ network to 225,000 ATMs across North America, Europe, and Asia Pacific.

Jack Henry & Associates (F10) teams up with Visa (F10)

In a new partnership, Jack Henry & Associates has integrated with Visa to allow customers to send P2P payments directly to a recipient’s Visa debit card. This eliminates the need for a recipient to provide their account and routing number to the sender. With increased competition in the P2P payments industry (PayPal/Venmo (FDNY 16), Square Cash, Zello), banks are feeling pressure to compete by offering faster delivery of funds. The partnership enables banks to offer funds-transfers a day sooner, or even same-day. Jack Henry began offering P2P payment capability in 2005 and expects the new method to boost usage.

Sberbank (F16) and MasterCard (F11) partner to launch ApplePay in Russia

Starting this week, Mastercard cardholders in Russia can now pay using ApplePay, thanks to a new partnership between Russian bank Sberbank and Mastercard. In a statement, the bank’s Deputy Chairman of the Executive Board, Alexander Torbakhov, said, “Apple Pay is driving the popularization of contactless payments in Russia and globally. Many of Sberbank clients actively use new technologies, and an increasing number of them will prefer cash-free and contactless payment using their smartphones.”

This is the Russian bank’s second big move this week. On Monday the company inked a partnership with Hyperledger to begin working on the Hyperledger Project.

PayPal (F11) and Vodafone partner for in-store NFC mobile payments

Acting on a partnership it first initiated in February, PayPal partnered with Vodafone to enable U.K. users to make NFC payments from their PayPal accounts using their Android phones. The agreement enables consumers to make transactions of up to £30 ($36.60) at 400,000 retail locations. For more expensive purchases, Vodafone Pay users can use their Vodafone wallet (launched in 2013), which requires a PIN.

The NFC payment capability with Vodafone was piloted in Spain. PayPal also has agreements in place with other global telcos, including America Movil, Telcel, and Claro.


Happy birthday, U.S. EMV.
It’s been one year since EMV regulation in the United States was placed into effect. If you live in America, you’ve likely noticed that adoption is low. In fact, according to a recent report from Mastercard, 88% of consumers have been issued chip cards, but only 33% of merchant locations accept them.

Mobile POS company CardFlight (F13) released data on EMV usage in the U.S. over the course of the year and found:

  • 78% of cards now contain EMV chips, up from 46% in October 2015
  • American Express leads the way in EMV card issuance, with 96% of their cards now EMV-enabled
  • Mastercard is the runner-up: 71% of cards issued contain an EMV chip

Check out CardFlight’s full EMV report here.

Though usage remains low, Mastercard reported this week that it has seen an overall decrease in fraud since the EMV change. The company reports that between April 2015 and April 2016, retailers who have transitioned to EMV experienced a 54% decrease in counterfeit fraud.

Ready, set, ACH
As of September 30, a new rule from NACHA requires all banks to process incoming same-day ACH credits. Most ACH payments are currently settled on the next business day: the new rule-change offers originators the option to send an ACH transaction to any recipient account for same-day processing. NACHA has imposed a same-day fee on every same-day ACH transaction to help financial institutions receiving the funds to recover the cost to enable same-day ACH. Phase two of NACHA’s Same-day ACH initiative will take effect 15 Sept 2017.

Capital One integration with Amazon Echo
Capital One integration with Amazon Echo

Technologies: AI, chatbots, and natural language processing (NLP)

The industry-wide obsession with chatbots continues. Finovate last month showcased a dozen variants on the chatbot theme. One of our newer alums, Personetics (F16), is even holding a Chatbot Bootcamp next month in San Francisco. And our chatbot-banking post in March is our fourth most-read. But the bigger conversation is around natural language processing (NLP) and how it can be used to retrieve information and perform tasks. A new report from Juniper Research estimated that NLP would drive $2.1 TRILLION in annual purchases via mobile five years from now (2021).

The tech world is in a tizzy over Amazon’s Alexa capabilities. We showcased two demos of her at FinovateFall from BankJoy (F16 demo) and FIS (F09) (F16 demo). Capital One is the only bank with a live Alexa integration (called “Skill”), but Lloyds Bank put together a proof of concept this spring. There are currently 2,904 skills listed in the unofficial Alexa database, but very little in the financial realm. Expect to see much more activity as financial institutions and fintech companies develop applications using Amazon’s Alexa and the new Google Assistant.

Sibos 2016 celebrates the blockchain

The annual Sibos 2016 conference in Geneva took place at the end of September—between the last Fintech Trending meeting and this one. Organized by SWIFT, Sibos is considered to be the world’s premier financial services event covering areas such as payments, securities, cash management, and trade.

So what was big at Sibos 2016 this year? The blockchain. 2016 was the first year that Sibos dedicated a track “exclusively to distributed ledger” technology. And the event’s startup-industry challenge was all about how to use the blockchain in the securities industry. The three startups that won the challenge will develop PoCs using technologies like smart contracts (SmartContract), distributed ledgers (Rise Financial Technologies), and open-source blockchain platforms (Coin Sciences).

Some have ascertained the irony in SWIFT’s embrace of the blockchain: Its $6 billion payment-messaging service is one of the technologies “widely perceived to be at risk for disintermediation” by blockchain technology. And indeed, companies like Finovate alum Ripple (F13) have made great strides in helping FIs like Bank of America, Santander, and Royal Bank of Canada use distributed-ledger technology to provide a global blockchain-payments network with “near-instant” settlement. Interestingly, Ripple recently hired former SWIFT board member Marcus Treacher as its new global head of strategic accounts. Treacher told CoinDesk in September that SWIFT was the “de facto way everyone moves money through countries.” And cross-border payment is something he specifically believes Ripple “can do better.”

  • Global Banks Partner to Form Blockchain Payments Network—CoinDesk
  • Sibos 2016: Innotribe Industry Challenge—results—Banking Technology

Speaking of blockchain, a number of companies with blockchain and distributed-ledger technologies will be presenting at our developers conference, FinDEVr Silicon Valley, next week. These companies include PwC, which will present its blockchain-as-a-service technology to improve trade finance, and IBM with its hyperledger implementation in the cloud that helps manage and test blockchain-dev projects. Also on hand will be distributed database specialists Aerospike (FD16) and Cognitect (FD16).

InsurTech rising

From FT Partners recent report on the boom in insurance-technology innovation, to InsurTech Rising’s event, Informa, to launch on 21 Oct, this area of financial technology is garnering increasing attention.

Why? As FT Partners pointed out in their 247-page report, the insurance industry is one of the areas of finance that so far has been least affected by the technological disruption nearly commonplace elsewhere. The insurance industry is a multitrillion dollar business; property and casualty insurers alone generated more than $64 billion in net income in 2014. And it sits at the nexus between the drive to better engage customers (is there anything enjoyable about insurance from a consumer perspective) and the need to accommodate complex and shifting regulatory landscapes (something the rest of finance is becoming increasingly familiar with).

What are the focuses of insurtech? Most technology innovation in the area revolves around trends in distribution and administration: data and analytics, and marketing and customer engagement. This includes everything from the kinds of products offered to consumers, such as micro-insurance, to using mobile channels and interactive technologies to make insurance products easier to understand, choose from, and purchase.

How are industry players responding and what to watch for? From partnering with innovative startups to acquisitions, incumbent insurance firms are increasingly aware of the challenge. FT Partners reports that more than 40% of traditional insurers surveyed by Ptolemus Consulting said they were planning to “acquire, or have already acquired, innovative startups to help them expand their digital capabilities” and more than half say they have already invested in social media, data mining, and predictive modeling. Nearly 70% have embraced mobile technology.

  • Wave Mechanics: FT Partners Report Highlights Trends Driving Rise of Insurtech—Finovate
  • Prepare for the InsurTech Wave: Overview of Key Insurance Technology Trends—FT Partners
  • Informa’s FinTech Futures Hosts InsurTech Rising (pending)—Finovate

Note: Finovate alums have the year of their first appearance listed after their name. For example, FIS first appeared at Finovate in 2009, so there is a (F09) after their name, with a link to that first demo.