Visa to Acquire Tink for Over $2 Billion

Visa to Acquire Tink for €1.8 Billion

Visa has revealed its intention to acquire Tink, a prominent European fintech company, in a deal valued at €1.8 billion, equivalent to $2.15 billion based on current exchange rates.

Tink's Role in Open Banking

Tink has established itself as a key player in the European fintech landscape, specializing in open banking application programming interfaces (APIs).

Previous Acquisition Attempt

This announcement follows Visa’s earlier decision to terminate its planned acquisition of Plaid, another significant open banking startup.

The original agreement to purchase Plaid was set at $5.3 billion, but the deal was ultimately abandoned due to regulatory obstacles.

How Tink's API Works

Tink provides a unified API, enabling customers to seamlessly connect to bank accounts directly from their applications and services.

Through Tink’s API, users can access crucial banking data, including account statements, initiate payments, and regularly update financial information.

The Importance of Open Banking Standards

While the EU’s Payment Services Directive PSD2 mandates that banks offer open banking interfaces, a standardized approach remains absent.

Tink addresses this challenge by integrating with an extensive network of 3,400 banks and financial institutions.

Simplifying Open Banking Integration

Developers can utilize a consistent API call to interact with bank accounts across a diverse range of financial institutions.

This streamlined process significantly simplifies the implementation of open banking features.

Tink's Client Base and Reach

Currently, 300 banks and fintech companies leverage Tink’s API to access third-party banking information.

Notable clients include PayPal, BNP Paribas, American Express, and Lydia.

Tink’s services collectively cover 250 million bank customers throughout Europe.

Future Operations

Headquartered in Stockholm, Sweden, Tink is expected to maintain its current operations following the acquisition.

Visa intends to preserve the Tink brand and retain its existing management team.

Funding History

According to data from Crunchbase, Tink has secured over $300 million in funding from investors such as Dawn Capital, Eurazeo, HMI Capital, Insight Partners, PayPal Ventures, Creades, and Heartcore Capital.

Statements from Tink's CEO

“For the past 10 years we have worked relentlessly to build Tink into a leading open banking platform in Europe, and we are incredibly proud of what the whole team at Tink has created together,” stated Daniel Kjellén, co-founder and CEO of Tink.

“We have built something incredible and at the same time we have only scratched the surface.”

“Joining Visa, we will be able to move faster and reach further than ever before. Visa is the perfect partner for the next stage of Tink’s journey, and we are incredibly excited about what this will bring to our employees, customers and for the future of financial services.”