Visa Acquires Currencycloud for $963M - Expanding Global Payments

Visa to Acquire Currencycloud for $963 Million

Just a year and a half following Currencycloud’s $80 million funding round, which included investment from Visa, the London-based API developer specializing in remittance and currency exchange is forging an even stronger connection with the financial services leader. Visa has announced its intention to acquire Currencycloud in a transaction valued at $963 million (£700 million).

Valuation Increase

This acquisition price represents a substantial increase compared to the previous valuation of approximately $500 million, as reported during the last funding round.

Given Visa’s pre-existing equity stake in Currencycloud, the final payment amount will be adjusted accordingly.

Currencycloud’s Impact and Client Base

Currencycloud currently serves over 500 customers across 180 countries. These clients utilize its APIs to facilitate multicurrency wallets, currency exchange, and account management solutions.

Notable customers include prominent fintech startups like Monzo, Monese, Starling, Revolut, and Dwolla. Service to these existing clients will continue uninterrupted.

Furthermore, Visa intends to integrate Currencycloud’s technology to enhance its own currency exchange infrastructure.

Expanding Visa’s Services

This integration will allow Visa to offer a broader range of services to its diverse customer base, encompassing financial institutions, fintech companies, and individual consumers.

New services designed to improve the consumer experience will also be developed.

Statements from Leadership

“At Currencycloud, we’ve consistently focused on creating a more advantageous future for all, from emerging startups to established global corporations,” stated Mike Laven, CEO of Currencycloud. “The prospect of reimagining global money flows has become even more exciting as we become part of Visa.”

He continued, “Combining Currencycloud’s fintech expertise with Visa’s extensive network will enable us to deliver enhanced value to businesses engaged in cross-border money movement.”

Growth in Remittance and Currency Transfers

The market for remittance and currency transfers within the financial services sector is experiencing significant growth.

This expansion is fueled by the increasing globalization of e-commerce, particularly over the last 18 months, and the lengthening of global supply chains.

Notably, Visa reports that 43% of small businesses worldwide participated in international trade in 2020.

Consumer Globalization and Cloud-Based Services

The rise of cloud-based and mobile transaction services has also contributed to a more globalized consumer perspective.

Disruption of Traditional Services

Remittance and currency transfers are areas ripe for innovation, as traditional services are often characterized by high costs and inefficiencies.

Currencycloud addresses these challenges by offering a novel implementation of currency transfer that can be seamlessly integrated into other financial services, streamlining their operations.

Strategic Acquisition for Innovation

This acquisition exemplifies a common strategy among established financial institutions.

Larger companies often find it challenging to independently innovate and enter new service areas, and therefore acquire smaller, more agile startups that are successfully leveraging technology.

The existing strategic partnership between Visa and Currencycloud suggests a strong foundation for successful integration and collaboration.

Visa’s Network Strategy

“The acquisition of Currencycloud is a further demonstration of Visa executing its network of networks strategy to facilitate global money movement,” explained Colleen Ostrowski, Visa’s Global Treasurer.

“Consumers and businesses are increasingly demanding transparency, speed, and simplicity in international payments. By acquiring Currencycloud, we can better support our clients and partners in reducing the complexities of cross-border payments and creating superior user experiences.”