Visa has announced that it has reached a deal to buy London-based fintech platform Currencycloud, which supports more than 500 banking and technology companies all over the world.
This recent decision from Visa highlights its growing commitment to strengthen its presence on the foreign exchange market and extend services on fintech and financial institutions.
Visa’s acquisition of Currencycloud can improve the financial services giant’s payments system and make it more secure and efficient for customers.
Meeting customers’ expectations
Colleen Ostrowski, Visa’s global treasurer said: “Consumers and businesses increasingly expect transparency, speed, and simplicity when making or receiving international payments.”
She also added that Visa’s move was strategic as the Currencycloud deal can improve its global money transfer capabilities.
Even before the acquisition, Visa already has an equity stake on Currencycloud which is a combination of cash and retention incentives that amount to $956 million.
On top of that, Visa has also participated last year in an $80 million funding round for Currencycloud together with SBI Group, a Japanese financial company.
A new chapter for Currencycloud
The two companies’ proven track record in the financial service industry will enable the latest acquisition to provide good fruits for Visa.
Currencycloud’s large network of partners and clients all over the world will enable Visa to strengthen its foothold in the highly competitive field of financial services.
But even with Visa’s takeover, Currencycloud’s current management team will not be replaced and will continue its operations in its London headquarters.
Also, the acquisition process isn’t final yet as both Visa and Currencycloud have still to undergo regulatory approval to ensure that fair competition in the market would not be negatively affected by the deal.
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